The Progressive Democrats have politely rejected a call by the Taoiseach, Mr Ahern, for a formal vote transfer pact in the general election, now expected to take place in May.
In his warmest remarks yet about the junior coalition partners, Mr Ahern was prepared to encourage Fianna Fáil voters to transfer to the PDs even without a guarantee of reciprocation.
"I hope that Fianna Fáil people would transfer to our colleagues in the Progressive Democrats. I would call on them formally in the actual campaign to do that," he said in his annual New Year's interview with RTÉ's This Week.
The Taoiseach's remarks will be variously interpreted as a sign that he believes the current coalition can return to power, or simply an acknowledgment that Labour will not do business with Fianna Fáil after the election.
He acknowledged that the Progressive Democrat leader, Ms Harney, had already stated that she would fight the election independently.
"But I would be quite happy at the end of the election if Fianna Fáil and the PDs or some formulation that is presently there ended up. I would be happy with that."
However, the Progressive Democrats refused to change their stand last night. "We formed pacts with Fine Gael and Fianna Fáil in 1989 and 1997. We lost on both occasions," said a party spokesperson.
Mr Ahern said: "I will tell you what my position is so that people will be clear. Number one, if Fianna Fáil is elected on its own, it will gladly govern, but I think that that is unlikely.Number two, we would be very happy to stay with something like the present arrangement with the Progressive Democrats and even if some Independents are with us."