Northern Ireland Secretary of State Theresa Villiers has announced the establishment of a panel of experts to examine a long-standing dispute over Orange Order parades in Belfast.
She said the panel would report by the end of January next year.
This year’s 12 July parade, which was banned from passing the nationalist Ardoyne area, passed off peacefully.
In 2013, a similar ban resulted in serious riots involving loyalist protesters and the police.
Unionist politicians had demanded that a public inquiry be set up to look at the issue.
Loyalists have manned a protest camp close to the Ardoyne/Twaddell Avenue interface since July 2013.
The total cost of policing the camp for the last 15 months is more than £12 million.
Unionist leaders had indicated Ms Villiers' response to their demand would impact on how they engaged with a wider political talks initiative planned by the UK government to address disputes over flags, parades and the past and also tackle a Stormont budget crisis.
It is understood the coalition was also planning 18 Northern Ireland wide protests if the government did not accede to its call.
But nationalists and republicans had voiced strong opposition to the suggestion of a commission of inquiry, insisting it would undermine the authority of the government-appointed Parades Commission.
Ms Villiers said she had decided to task a panel of experts to examine the issue.
