The Taoiseach has said he welcomes the decision by the EU and UK to extend talks, aimed at securing a post-Brexit trade deal, beyond this weekend.
Micheál Martin told RTÉ News he believes there is "hope as long as people continue to talk".
In his view, it is "extremely important and imperative" that both sides do everything possible to avoid a no-deal Brexit.
Mr Martin said he does not understate the difficulties or challenges facing both sets of negotiators but added that with "a will there is a way".
He said it was very important that everything is done to try and get a deal over the line. The Taoiseach believes there is hope as long as people continue to talk.
Level playing field and fisheries remain the key areas as well as a dispute resolution mechanism, he told RTÉ.
Taoiseach @MichealMartinTD welcomed the decision to continue the talks. In his view "it is extremely important and imperative that both sides do everything they possible can to avoid a no-deal Brexit."@rtenews pic.twitter.com/mFY6kZwgPi
— JennïeØSullivân (@OSullivanJennie) December 13, 2020
Earlier today, EU Commission President Ursula von der Leyen said she and British Prime Minister Boris Johnson have mandated their negotiators to continue the Brexit trade talks and see if agreement can be reached at this late stage.
She said they have been working day and night and "despite exhaustion and almost one year of negotiations", they both think it is responsible to go the extra mile.
The statement was issued after Mr Johnson and Ms von der Leyen concluded a telephone call.
It's understood there was some progress overnight on the vexed question of fair competition and the level playing field.
The focus appears to be narrowing down to the question of what retaliatory measures the EU can take against the UK if it diverges from EU standards over time.
How automatic would that retaliation be, and in what areas could the EU retaliate? These questions have been at the heart of the negotiations, and they may yet prove insurmountable.
However, sources have suggested that a mechanism that would overcome differences should be within the grasp of experienced trade negotiators.
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Speaking in Downing Street, Mr Johnson said there is a Brexit trade "deal to be done" but warned that the UK and EU "remain very far apart" on the key issues.
British Prime Minister Boris Johnson has said there is a Brexit trade 'deal to be done' but warned that the UK and EU ‘remain very far apart’ on the key issues | Read more: https://t.co/9UzzhFNuYp pic.twitter.com/Zi2rB8PmTc
— RTÉ News (@rtenews) December 13, 2020
He said: "We are always happy to talk and to make progress where we can. I do think, as I say, there is a deal to be done if our partners want to do it. But we remain very far apart on these key issues.
"And you know what they are - the UK can't be locked into the EU's regulatory orbit and we've obviously got to take back control of our fisheries four-and-a-half years after people voted for it.
"So those are the points. I think that it is very clear what the UK is talking about, let's see what we can achieve.
"But in the meantime, get ready, with confidence, for January 1 - trade on WTO terms if we have to."
Asked about signs of optimism in the statement of the Commission President earlier, Mr Johnson said: "If Ursula is optimistic then that's great, but the two sides are still far apart.
"What we can't do is compromise on that fundamental point of what Brexit is all about, the ability to control our laws and our seas."
Meanwhile, Minister for Foreign Affairs Simon Coveney said there is now "enormous pressure" on both negotiating teams to find a way forward.
Mr Coveney said: "My view is a deal can be done but it needs to be done in the next few days. We know it will be a huge political failing if there is not a deal.
"While of course we continue to plan for a worst case scenario, as we have for many months now, we're also relieved to see these negotiations continue for a few more days to try to find a way of closing the remaining gaps."
Time to hold our nerve and allow the negotiators to inch progress forward - even at this late stage. Joint statement on #Brexit negotiations is a good signal. A deal clearly very difficult, but possible. https://t.co/TfN0p9nQ9G
— Simon Coveney (@simoncoveney) December 13, 2020
Speaking to RTÉ's This Week he said the teams negotiating Brexit are remaining "tight lipped" which is the way it should be and he would take that as a positive.
He said it is about giving the negotiating teams "time and space now" and not reading too much into the commentary happening around it.
Mr Coveney said this morning's developments were not a surprise to him that the talks would continue as he believes both sides want a deal.
He said his understanding is that the most difficult issue is how future change is managed.
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Earlier Taoiseach Micheál Martin urged the EU and UK to continue with negotiations.
Mr Martin said he was not underestimating the challenges of getting a deal over the line but believes "it is very important that both sides continue to talk, both sides continue to engage, until we can get a deal over the line.
"To me it makes no sense that we break up with a no-deal, it would be very damaging indeed."
Speaking in Cork, Mr Martin said he does believe a dispute resolution mechanism can be achieved.
"There is room there to arrive at a dispute resolution mechanism that would facilitate the UK's continued access to a very lucrative European market," he added.
He said the UK and Europe "breaking up in acrimony would not be conducive to a new transatlantic relationship that Joe Biden clearly wants to create".
Asked about the optics of gunships off the UK coast, Mr Martin replied that it was the perfect illustration as to why a deal was needed.
He said: "That's the kind of acrimony that could emerge if there was an acrimonious breakup and we want to avoid that."
British foreign minister Dominic Raab said people would expect the Royal Navy to play a part in policing the UK's territorial fishing waters if there was a no-deal Brexit.
Speaking on BBC's Andrew Marr programme, he said the UK would enforce international rules in its waters in a "proportionate way" but argued it was "crazy" for France to be making "aggressive demands" when its fishermen would lose out if there was no agreement.
He added: "With the French this is crazy to end up without a free trade deal when they're making such aggressive demands on fisheries. If we leave without a free trade deal, they will have zero assured access to our fisheries."
The Confederation of British Industry, which represents 190,000 businesses in the UK, said a deal was both "essential and possible".
CBI director-general Tony Danker said: "The news that talks will continue gives hope. Ongoing delays are frustrating and cost businesses. But it is vital to make use of the time.
"Government must move with even more determination to avoid the looming cliff edge of 1 January."
Reporting Tony Connelly, Sean Whelan, Jennie O'Sullivan and PA
