Leading figures in both the DUP and Sinn Féin have expressed confidence that a deal to allow the devolution of policing and justice powers to the Northern Assembly can be agreed soon.
The talks at Hillsborough Castle, which were adjounred last night, are to resume tomorrow.
The North's Finance Minister Sammy Wilson told RTÉ News that while there are still some issues that need to be cleared up, the talks so far have been constructive.
Speaking after the talks ended yesterday, the DUP's Edwin Poots said the mood in the discussions with Sinn Féin had been positive and said they had achieved greater clarity about what needed to be done to secure a deal.
Mr Poots said the mood of the discussions was more up than down.
A deadline imposed by Taoiseach Brian Cowen and British Prime Minister Gordon Brown to reach a settlement passed yesterday lunchtime.
The parties were told that a failure to secure a deal by then would see the two governments publish their own proposals to end the impasse over transferring law and order powers.
However, with meaningful engagement between the DUP and Sinn Féin continuing through yesterday the timeframe was allowed to slip as Dublin and London continued to monitor progress.
