Fianna Fáil's organisation in Donegal is strongly opposing an effort backed by Taoiseach Bertie Ahern to bring Independent Fianna Fáil TD Niall Blaney into the party's ranks.
Despite optimism that a deal was near at hand, the Taoiseach yesterday said talks "were still ongoing, but to the best of my knowledge are not complete".
Expressing gratitude to Mr Blaney, Mr Ahern said the Donegal North East TD and his father, Harry, had supported the Government "for the last nine years".
However, a unification of Fianna Fáil and Independent Fianna Fáil, which was formed in the wake of the Arms Trial and the sacking of Neil T Blaney, has caused serious dissension in the constituency.
Local TDs Cecilia Keaveney and Dr Jim McDaid both expressed strong opposition at a meeting of the Fianna Fáil constituency organisation on Sunday in Letterkenny, which was attended by the party's general secretary, Seán Dorgan.
The Independent Fianna Fáil organisation met in the Silver Tassie hotel in the town, where Mr Blaney told supporters a deal with Fianna Fáil had been done and was ready to be announced.
Mr Blaney, who once insisted that his party would have to receive an apology for the way his uncle was treated after the Arms Trial, has recently offered more conciliatory signals, saying the "truth would probably never come out" after the death last month of former taoiseach Charles J Haughey.
Although Fianna Fáil headquarters denies an agreement has been reached, some sources close to Mr Blaney had claimed a deal would be announced at this evening's meeting of the parliamentary party.
Some Fianna Fáil activists say recruiting Mr Blaney now makes no sense, since it guarantees that the party risks "one less vote for the Taoiseach after the election" as the party and Mr Blaney currently hold all of the constituency's three seats.
Dr McDaid has previously claimed that he is coming under strong pressure to run again, rather than let Mr Blaney run as a Fianna Fáil candidate.
Meanwhile, Mr Ahern has downplayed the latest Sunday Business Post/Red C opinion poll, which reports a further 1 per cent drop in Fianna Fáil's support. Given the difficulties the Government endured over the Supreme Court's statutory rape case judgment, Mr Ahern said the result "was all right. Naturally, it isn't where I would like it to be."