A round of "shuttle negotiations" involving the Apprentice Boys and the Bogside Residents' Group (BRG) may prompt the Parades Commission to postpone its decision, due today, on whether to allow next Saturday's Apprentice Boys' parade in Derry.
Great local concern that the annual loyal order parade could degenerate into serious disturbances if an accommodation was not found between the two sides has persuaded the Apprentice Boys and the BRG to enter into proximity-style negotiations.
As Orange Order leaders continue to insist that their Portadown colleagues must be allowed to parade down the nationalist Garvaghy Road, there is anxiety that the bitter fallout from Drumcree could lead to violence in Derry. Any disturbances might not be confined to Derry as nationalists and the loyal order are also in dispute over "feeder" marches to the main Derry parade from areas such as Bellaghy, Dunloy and the Lower Ormeau Road in Belfast.
Talks involving the two sides facilitated by the Parades Commission were continuing last night, and are due to resume today in an effort to break the deadlock over the parade and avert disorder in the city on Saturday.
Both the Apprentice Boys, which is led by its governor Mr Alistair Simpson, and the BRG, whose main spokesman is Mr Donncha Mac Niallais, refused to give any details of this surprise initiative. "We have been asked to observe a strict media blackout, and we are going to stick to that," said one BRG spokesman.
Growing tension in the city was exacerbated at the weekend with the stated intention of Mr David Nicholl of the Ulster Democratic Party - which is linked to the UDA - to bring 500 loyalists into the city centre to confront any nationalist protest against the Apprentice Boys.
Mr Mark Durkan, an SDLP Assembly member from Derry, said such a loyalist demonstration would be "reckless".
On Friday, Mr Mac Niallais of the BRG accused the Apprentice Boys of "inflaming an already tense situation". The Apprentice Boys described a counter-demonstration planned by the BRG for the war memorial at the Diamond as "beneath contempt and beyond condemnation".
On Saturday, however, there was movement. The Parades Commission, under pressure, it is understood, from concerned local political, church and business leaders, persuaded the two sides to make one final effort to try to reach an accommodation.
The commission was today due to make its announcement on whether the parade will be allowed or rerouted, but a spokesman said the announcement could be postponed if the two sides were still talking.
Meanwhile, over 100 members of the Orange Order's ruling body, the Grand Lodge, met in east Belfast on Saturday to discuss strategy over parades and to review the Drumcree situation. The order's leaders were adamant that Portadown Orangemen must be allowed down the Garvaghy Road.
Portadown Orangemen are still maintaining a token presence at Drumcree.