Northern Ireland's First Minister in waiting, Rev Ian Paisley shook hands with the Taoiseach Bertie Ahern in an historic moment ahead of their meeting at Farmleigh this morning.
When the DUP leader arrived in Dublin shortly before 11am he told waiting reporters "I must shake this man's hand. I must give him the grip". He then shook Mr Ahern's hand and slapped him on the back.
The handshake is considered symbolic and historic as Dr Paisley has previously refused to shake the Taoiseach's hand in public pending a political resolution in Northern Ireland.
In a joint press conference held after the meeting the Taoiseach said they had engaged in "businesslike and friendly discussion on a range of matters of mutual interest".
He said his Government would work with the new NI Executive in a manner of "sincere friendship and assured cooperation" on future infrastructure investment projects.
The Taoiseach said this was an important time in the history of Ireland and said the two governments "must do our best to put behind us the terrible wounds of our past and work together to build a new relationship between our two traditions".
"That new relationship can only be built on a basis of open dialogue and mutual respect," Mr Ahern added. "I fervently believe that we move on from here in a new spirit of friendship. The future of this island has never been brighter."
Dr Paisley said mutual respect between the two governments was "key to cementing good and civilised relationships on this island".
He said he believed it was important for Northern Ireland to engage with its "closest neighbour" from a position of mutual respect and assured confidence.
"Today we can confidently state we are making progress to ensure that our two countries can grow side by side in a spirit of generous cooperation," he said.
The DUP leader said he and the Taoiseach had "engaged in plain and clear speech" during their meeting about their "hopes and aspirations for the people we serve".
The Taoiseach said he and Dr Paisley would visit the Battle of the Boyne tourist site in Co Meath in the near future. Dr Paisley said he looked forward to visiting the site, "but not to re-fight it".
"Such a visit will help to demonstrate how far we have come when we can celebrate and learn from the past so that the next generation more clearly understands the present," he said.
Mr Ahern said "this site can become a valuable and welcome expression of our shared history and a new point of departure for an island, North and South, which is at ease with itself and respectful of its past and all its traditions".