Minister for Communications Noel Dempsey has described the chances of a coalition deal between Fianna Fáil and the Green Party as being "very, very possible."
Speaking at lunchtime, Mr Dempsey said both parties were discussing a programme for government "department by department" and that the main aim of both parties was five years of stable government.
Mr Dempsey said the talks had gone well but that there were some points of policy where differences remained but that both sides were committed to producing a programme "that is workable, that is attainable and achievable."
While saying that points of policy had arisen where compromise "on one side or the other or perhaps compromise on both sides" might be required, the Minister said "I wouldn't say there's anything insurmountable at the moment."
Speaking on RTÉ's News at One, he said Fianna Fáil was conscious that a Green Party meeting would need to be held on Sunday to discuss any possible deal but insisted talks between both parties were not subject to any deadline.
Talks broke up at 9pm after seven hours and will resume tomorrow. Speaking afterwards former Cork South Central TD Dan Boyle of the Green Party said: "There are difficulties that remain and tomorrow is going to be a difficult day".
Minister for Transport Martin Cullen said today that "some issues have been agreed upon as I understand it, but there are still some difficult issues".
"Progress is good between ourselves and the Green Party and we await an outcome," he told reporters at a press conference in Dublin.
Mr Cullen said he was confident Greens would not block his plans for the completion of a motorway network linking the State's major urban centres.
"Some 70 per cent of roads are now complete and tendering is well under way on the remaining part," he added. "Motorways are central to the development of this country. The motorways are not just about transport corridors. They are actually a very important economic and social corridor as well and we desperately need to see those completed."
The Fianna Fáil negotiating team is led by Minister for Finance Brian Cowen and includes Mr Dempsey.
The Green Party delegation, led by deputy leader John Gormley, includes Mr Boyle and the party's general secretary Dónal Geoghegan. Speaking on his way into a fourth day of talks with Fianna Fáil today, Mr Gormley said there was now a "sense of urgency" in the negotiations ahead of a Green Party meeting on Sunday.
It is understood that Mr Ahern is keeping PD acting leader and Minister for Health Mary Harney informed of developments.
Mr Dempsey made his comments this afternoon after he attended the final scheduled Cabinet meeting of the 29th Dáil.
At that meeting, the Taoiseach paid tribute to Tánaiste and Minister for Finance Michael McDowell, who lost his seat in the recent election, for his contribution to succesive Goverments over the last ten years.
He also paid tribute also to Attorney General Rory Brady, who is departing. The Dáil is due to sit again on June 14th when a vote is to be taken on the next taoiseach.