A proposal for a day of reconciliation to change the context for the decommissioning of weapons is part of a package aimed at resolving the impasse in the peace process, according to senior political sources.
After a day of intense political and diplomatic activity, the shape of a possible compromise to prevent the suspension of Northern Ireland's new institutions and achieve total decommissioning began to emerge.
The day of reconciliation idea was first suggested in the Hillsborough Declaration last April, and sources said it was now back in consideration as part of a sequence of events which would also involve significant demilitarisation measures by the British government in the North.
Senior sources said that if all the connotations of surrender could be removed from decommissioning it would be easier to achieve. Recent discussions have tried to find a way of putting weapons beyond use that would be free of such associations.
The plan being worked on by Dublin with London would involve parallel moves towards the decommissioning of weapons and a scaling-down of the British military presence in the North.
The suggested inter-governmental proposals would be based on contrasting the certainty of achieving decommissioning in the longer term with the equal certainty that, if the institutions were suspended, decommissioning would never take place.
The view in political and diplomatic circles was that the Ulster Unionists would have to look seriously at these proposals for fear of losing the moral high ground acquired in recent weeks and becoming politically isolated.
Broad consensus was said to be emerging between the two governments, the White House and Sinn Fein on the shape of a compromise package. The question remained as to whether the Ulster Unionists could accept proposals which senior analysts said were "pregnant with decommissioning", or choose to bring the Belfast Agreement down and risk a return to conflict.
The IRA is expected to clarify its stance over the next two days but it may be "filtered" through a third report from Gen. John de Chastelain. Sources predicted the strongest language so far from the IRA on the weapons issue.
But the clear understanding is that any initiative from the republican movement will be strictly conditional on demilitarisation and the continuation of the new institutions. Republican sources have always said the weapons issue would be resolved within the context of the implementation of the Belfast Agreement, particularly the demilitarisation clauses.
Sources said full clarification from the IRA would be very difficult for the two governments to reject, as they would be left open to the charge of following Mr David Trimble's agenda.
As of last night no meeting had been arranged between the Taoiseach and the British Prime Minister, but it is believed that if the compromise package is considered strong enough they will meet tonight or tomorrow morning and may make a joint recommendation to the Ulster Unionists to accept the republican movement's offer as conveyed to Gen. de Chastelain.
The elements of a solution are believed to be in place, if the Ulster Unionists are prepared to accept them. A variety of sources in the peace process said the idea put forward by the Bishop of Derry, Dr Hegarty, for arms to be placed in his care for a year would not form part of any package recommended by the two governments.
While there was a positive mood in nationalist circles last night, Northern Ireland Office sources cautioned against undue optimism.