The Irish and British governments have said there is the potential to have the Northern Ireland Assembly restored within days, but the DUP will not sign up to a proposed agreement.
Speaking after meeting the five main parties, Tánaiste Simon Coveney said there could be a deal before Christmas if there is a change in approach from the DUP.
Northern Ireland Secretary of State Julian Smith also pointed the finger of blame at the party.
It is likely that the talks aimed at restoring devolution will now be suspended until after the Christmas holiday period.
Julian Smith told reporters at Stormont that the two governments had been "very close" to tabling a text for agreement by all parties, and had wanted to do it by tomorrow.
If there had been agreement, he said the Stormont Executive could resume on Monday.
He said the UK government stands ready to make "positive funding contributions" when devolution is restored.
But, he added, unfortunately not all parties are on board, so the governments will not table the proposed text and will allow the parties to reflect.
Mr Smith made it clear that the DUP is the party not ready to sign up to the agreement at this stage.
The Tánaiste said the two governments could provide texts "within hours" for the basis for a possible deal, but that "there must be appetite to accept that".
