Sinn Féin leader Gerry Adams said today he was optimistic of a deal on powersharing in the North by the March 26th deadline after talks with the British government.
Mr Adams met the Prime Minister Tony Blair and Chancellor Gordon Brown over calls for a sufficient funding package for a new powersharing executive.
He said: "A British government will always be reluctant to give as much as it should. "But at the same time I do think that this British Government, they know, they can smell it, that this could be the real breakthrough after all the conflict, after all the false dawns.
"Whatever about the fiscal amounts involved, there certainly is a realisation there that this could be it."
His talks followed similar discussions between Mr Blair, Mr Brown and the Democratic Unionist leader the Rev Ian Paisley.
Mr Adams continued: "He (Mr Brown) certainly did give the impression that there is a historic opportunity; that given where we have all been in the recent past we are now on the cusp of functioning, sustainable institutions coming into place and that he has a role to play in ensuring that is properly resourced."
Northern Ireland Secretary Peter Hain told MPs today that the Treasury would not "stand in the way" of the devolution process.
"I agree that an incoming executive will have to have a good financial package. The Chancellor is very aware of that and, indeed, will not want to stand in the way of a successful devolution on March 26th," he told the Commons.
Emerging from the talks, Mr Adams said he had made clear that the package should be a "dividend for peace" but said detailed figures had not been discussed. On water charges in particular, he said, it had been made clear to Mr Brown that Westminster should pay for historic failures to invest in Ulster.
"We certainly want to see the British Government pick up the tab for the failure to invest in water services and the infrastructure.
"That's what I was negotiating for today." But he said failure to secure a package "should not be an excuse for anyone relinquishing their obligations back home in Belfast".
DUP leader the Rev Ian Paisley has so far declined actually committing himself to enter the office of first minister with Sinn Féin's Martin McGuinness as his deputy by the March 26th deadline for restoring power to Stormont.
But yesterday Dr Paisley emerged from talks with Northern Secretary Peter Hain insisting that progress was being made.
He said that the DUP's successes in the election, winning 36 of the 108 seats, had strengthened his negotiating hand.
"I can afford now to go a bit further because I am confident the people are with me," he added.
Meanwhile Mr McGuinness confirmed he would submit as nominee for deputy first minister alongside Dr Paisley.
Mr McGuinness said he had written to Mr Hain to this effect and insisted that voters wanted power restored to Stormont.
