The Taoiseach has said "considerable difference" remains between the social partners on the pay issue in the current round of talks.
But he said he believed agreement is close on a major package of measures in relation to the protection of employment standards.
Bertie Ahern
Mr Ahern urged all parties involved in the talks to be "flexible and creative" in negotiating an agreement and said social partnership had proved a "winning formula".
"It is important that we make every effort to conclude a new agreement which is appropriate to our time," the Taoiseach said.
Speaking at the biennial conference of the trade union Impact in Killarney today, Mr Ahern said an "emerging package of measures" had been identified in relation to maintaining and protecting employment standards.
"I believe we can adopt measures, in the context of a new agreement, which will provide the necessary strong protection for employment standards, while Ireland continues to provide an excellent environment for business and job creation," he said.
"I hope we can make further progress in the talks, so we can conclude the overall negotiations. However, I understand that there is a considerable difference between the sides on the parameters of a pay agreement, as well as on some significant non-pay items."
Mr Ahern noted that a "key concern" for the Irish Congress of Trade Unions at the negotiations had been the need to protect employment standards in a rapidly changing labour market.
"I believe we are close to finalising a major package of measures in this area which could be delivered by Government and the Social Partners in the context of any new agreement."
He added that many of the key features were well known, but they would include a new statutory Office of the Director for Employment Rights Compliance and a trebling in the number of Labour Inspectors.
"As an employer, the Government has a view on what is sustainable, a view which is being reflected in the talks. I would just urge all parties to be flexible and creative in negotiating an agreement that is consistent with our genuinely shared concerns about employment, living standards and the quality of life of our people."
Mr Ahern said that if there is to be a new agreement, it must cover a range of issues.
Taoiseach Bertie Ahern
He acknowledged the role played by public servants in the partnership process and said he was a "strong supporter" of the principle of benchmarking.
But he also told delegates at the conference that "to be regarded as in any way credible, any new social partnership agreement must give a new impetus to the modernisation of the public service.
"It must facilitate the kind of imaginative and flexible service delivery that our citizens require, and that the taxpayer has paid for."
He said some critics dismiss social partnership as a tired "same old" formula, but it was not. "It has shown a remarkable capacity over the years for innovation and adaptation to changing circumstances."
The overriding policy focus and priority, he said, must be to "maintain our strong economic performance so that we can continue to have full employment".