Common ground exists between the Stormont parties as the deadline looms for saving power-sharing, the Secretary of State for Northern Ireland has said.
Talks involving the main parties and the Irish and British governments are expected to continue until Monday's time limit for the appointment of a First and Deputy First Minister before a fresh election may be called.
James Brokenshire said discussions had been constructive.
"There are a number of issues where I see common ground and where I firmly believe that resolution can be achieved, he said."
"But there are other issues that still remain to be resolved in order for an Executive to be formed on Monday."
Sinn Féin has said it will not share power with the DUP leader Arlene Foster as First Minister until a public inquiry into the Renewable Heat Incentive (RHI) is concluded.
Former deputy first minister Martin McGuinness stepped down in protest after it emerged the botched green energy scheme could cost taxpayers almost half a billion pounds.
Following Mr McGuinness’s death this week, Sinn Féin leader Gerry Adams and Michelle O'Neill, the party's leader in Northern Ireland, must now lead the party into negotiations.
In pictures: Martin McGuinness's funeral
RTÉ Player: Martin McGuinness funeral and procession
The parties had also been at loggerheads over funding for inquests into deaths during the conflict.
Mr Brokenshire added: "We also have a duty to survivors and victims to come forward with proposals to deal with the past.
"I believe that a deal is still achievable, with good will, good spirit and that positive intent.
"But time is short and we must firmly focus on those key issues to enable an Executive to be formed on Monday."
He said he was engaged in the process.
"I will be working intensively in the coming days to achieve that positive outcome, to see inclusive devolved government restored here in Northern Ireland, that responsibility that we all feel in that regard and it is with that intent that we start meetings this morning."
