The UK government has offered a financial package to help Northern Ireland return to a stable financial footing and support the return of the Stormont Executive.
The pledge from Northern Ireland Secretary Chris Heaton-Harris came during talks with the five main parties about Stormont's economic woes.
The package includes funding for public sector pay rises, but it is dependent on the return of the Stormont power-sharing institutions.
Speculation has been growing in recent weeks that the DUP may be closing in on an agreement on post-Brexit trade that could restore the Executive and Assembly at Stormont, with Mr Heaton-Harris recently saying negotiations are in their "final, final phase".
But if devolution does return, politicians will be facing a perilous financial situation.
The talks at Hillsborough Castle were focused on those economic issues.
During the talks the package was presented to political leaders from the main Stormont parties with further technical briefings to follow.
The measures include funding for public sector pay rises this year, reform of the funding model for Northern Ireland, including the setting of a new fiscal floor, and stabilising fund for the next four years to give the Executive access to additional funds.
It also includes giving the Executive power to spend money which currently comes from the UK government for projects in Northern Ireland to be redirected for the transformation of public services, as well as a two-year period to pay back a Stormont budget overspend being extended to five years.
Stormont parties will also be urged to progress steps taken by Mr Heaton-Harris on new revenue-raising measures.
If there is no restoration of Stormont, the government will have to consider an alternative plan.
Stormont is on track for an overspend this year of #450 million, a figure that rises to nearly #1 billion if accounting for a pay rise for Northern Ireland public sector workers to match that of the other regions of the UK.
The problems have been exacerbated by the need to repay money to the Treasury that was made available to plug a black hole in last year's budget.
Local parties have also been calling for reform of the financial model used to allocate Treasury funds to the region on an annual basis.
Public sector workers staged a noisy protest outside Hillsborough Castle before Monday's talks.
Devolved government has not been functioning in Northern Ireland for nearly two years because of the DUP's ongoing boycott of the institutions in protest at post-Brexit trade agreements.
The DUP has been in negotiations with the government to secure legislative assurances over Northern Ireland's economic position in the UK.
Speaking to the media before the meeting, Mr Heaton-Harris said progress was being made in negotiations with the DUP on the Windsor Framework but he would not be giving a "running commentary".
He said that as part of his focus to "deliver for" people in Northern Ireland, the UK government has worked to address the DUP's concerns on the framework, a set of trading arrangements for the region post-Brexit.
"I continue to engage with the DUP and, as I've said before, these discussions are making progress, but I'm not going to provide a running commentary," he said outside Hillsborough Castle.
"Alongside those negotiations, I'm now convening the Northern Ireland party leaders here today at Hillsborough Castle to talk about ensuring financial stability and sustainability for Northern Ireland.
"I want to agree the basis upon which the Northern Ireland Executive can return on a stable financial footing.
"I also want to ensure that public services are able to meet the needs of the people of Northern Ireland.
"The UK government is willing to help but all of these issues can be best addressed by the return of locally accountable institutions built on secure foundations.
"I hope our work together over the next few days will do exactly that."
Sinn Féin's Stormont leader Michelle O'Neill said the offer of a financial package from Government was time-limited and conditional on the restoration of Stormont.
She said: "Chris Heaton-Harris was very clear today that this is a three-day process.
"Today's meeting is all party leaders, tomorrow there will be more technical discussion on points of clarity and Wednesday will be another political meeting.
"If there is no Executive then the offer which was put on the table today, which needs a lot more work, is conditional on there being a restored Executive."
DUP leader Jeffrey Donaldson said the Northern Ireland Secretary did not set a deadline for the restoration of power-sharing as he welcomed the government's offer as a "first step".
Mr Donaldson added that he did not see the conclusion of talks at Hillsborough Castle on Wednesday as a deadline.
"This is a process and I don't believe it is a process that is going to be corralled into a few days here."
He added: "I welcome this as a first step, as a first move by the government. I think it puts on the table an offer that begins to address some of the issues that are at the heart of the shortfall in our budgetary arrangements.
"Does it go far enough? No. Is more work required? Yes it is."
