The Northern parties will today consider the elements of an agreement brokered last night by the British Prime Minister, Mr Blair, after seven hours of talks.
The deal involves a compromise on the key issue of the powers and functions of a North-South body for the promotion of trade and economic development.
Nationalists wanted the new body to have a major role in attracting foreign investment to both parts of the island. But following unionist objections, this aspect of the proposal was scaled-down.
However, it is understood the Ulster Unionists have come around to the view of most of the other parties that the six government departments in Northern Ireland should be reconfigured into 10.
It is also understood that there are to be seven or eight cross-Border bodies. Mr Blair's intervention seemed to have paid off, although he left Stormont without speaking to reporters.
The new cross-Border bodies will deal with such areas as inland waterways, limited aspects of tourism, aqua-culture and European funding programmes. The new government portfolios include culture and environmental protection.
Senior observers said Mr Blair had come mainly for the purpose of persuading the Ulster Unionists to compromise with the nationalist parties. It is understood the British Government is particularly anxious that when Mr Trimble goes to Washington and Oslo next week to collect peace prizes, including the Nobel award, he should not do so against the background of a flagging peace process back home.
A spokesman for Mr Blair said there had been "significant progress" in last night's talks. It was "now between the parties".
The spokesman added: "We're not there yet but we're getting there."
The Ulster Unionist Party is expected to review the proposals at a lunchtime meeting today. This is likely to be followed by a round-table meeting of the parties at Stormont.
However, none of the progress made last night makes much difference to the difficult issue of decommissioning which still remains unresolved.
The Taoiseach, Mr Ahern, may travel to Northern Ireland today. His absence yesterday was partly in response to a request from the Ulster Unionists to stay away, observers believed. Meanwhile, Sinn Fein sources are becoming concerned at Mr Ahern's apparent support for the UUP approach on decommissioning.
Last night's outline agreement, while not representing a particular triumph for Mr Blair, at least means the two governments can set the legislative process in train so that the new bodies can be in place at the time of the proposed formal transfer of powers in the spring.