The Taoiseach, Mr Ahern, spoke to British Prime Minister Mr Tony Blair today to discuss a proposal to put to Northern Ireland parties to try and save the Belfast Agreement.
Senior Irish and British officials are continuing their work on the proposals, which are not expected to be ready until "the end of the week" after Mr Ahern returns from an official visit to South America.
A Government spokesperson told ireland.comthere was hope Mr Ahern and Mr Blair would reach agreement.
Both governments are hoping to come up with proposals that can address unionist, nationalist and republican concerns on the issues of paramilitary decommissioning, police reform, the scaling down of army bases and operations and other aspects of the Belfast Agreement.
The package will be presented to the parties on a take-it-or-leave it basis.
If they reject it, the British government will be faced with the choice of whether or not to allow a vote for a new Northern Ireland First and Deputy First Minister in the Stormont Assembly in the wake of Ulster Unionist leader Mr David Trimble's resignation from the executive over IRA disarmament.
Failure to elect a First and Deputy First Minister would force fresh Assembly elections. Alternatively, the government could suspend the political institutions in an attempt to buy more time to secure a deal.
But in an interview to be broadcast on BBC News 24 tonight, Mr Trimble has warned the Belfast Agreement may be unworkable.
He said a failure by the IRA and loyalist paramilitaries to decommission could mean another review of the Agreement in the autumn.