The Taoiseach, Mr Ahern, and the British Prime Minister, Mr Tony Blair, are closely monitoring negotiations between their senior officials and nationalist and unionist politicians to determine whether a visit to Northern Ireland this week might help end the political stalemate.
The Sinn Fein Minister of Education, Mr Martin McGuinness, said yesterday that "limited progress" was made in intensive talks over the weekend between British and Irish officials, Sinn Fein, the SDLP and the Ulster Unionist Party.
This marks a cautious change of mood since the impasse of last week when there were fears that impending Westminster and local elections would mean the negotiations being suspended until the autumn. Mr McGuinness's remarks echoed similar qualified comments over the weekend by the Sinn Fein president, Mr Gerry Adams, and a party MLA, Mr Pat Doherty. British and Irish officials, conscious of how the optimism of the previous week quickly turned to pessimism, were guarded but agreed there was movement over the weekend.
"I think some progress has been made, and continues to be made," said a senior Dublin source. "The negotiations are still going in the right direction," said a British source.
How the talks progressed would determine whether Mr Ahern and Mr Blair would travel to Hillsborough this week to try to finalise a deal, they added. Talks ran into last night and will continue today. The two governments, Sinn Fein, the SDLP and the Ulster Unionist Party are still trying to agree an interlocking package on policing, demilitarisation and paramilitary arms. Issues such as merging the RUC Special Branch into the general crime division of the new force and closing Gough barracks, upon which the SDLP is especially focused, appear capable of speedy resolution.
But some Sinn Fein demands on strengthening the watchdog powers of the Policing Board, Police Ombudsman and Oversight Commissioner would need amending legislation.
It is understood that the British government is prepared to make a number of commitments to try to meet some Sinn Fein requirements and would also review how the new policing system was operating in one or two years' time.
All sides agree that there is limited time for a deal, as the elections are likely to force the negotiations and possibly the Executive and Assembly into suspension.
Moreover, the First Minister, Mr David Trimble, is under increasing pressure to step up sanctions against Sinn Fein, in the absence of decommissioning.
Mr McGuinness said Mr Trimble should "face down the rejectionists" in the UUP. "He should take courage and defend the Good Friday agreement with the rest of us," he added.
Asked if the IRA would move on arms, as Ulster Unionists are demanding, Mr McGuinness referred to the IRA statement of May last year when it said that in the right "context" it would put arms verifiably beyond use.
