Last minute efforts by the British and Irish governments have failed to get both sides in the Drumcree standoff back into talks.
Last night, Mr Denis Watson, Armagh County Grand Master of the Orange Order, said the proximity talks were "dead in the water".
The British prime minister's chief-of-staff, Mr Jonathan Powell, had contacted nationalist and Orange Order representatives about the talks, which were expected to restart at 9 a.m. today.
The Taoiseach's office was in contact with Downing Street yesterday and Government sources were pessimistic last night of a talks resumption this morning.
Mr Breandan Mac Cionnaith, of the Garvaghy Road Residents Group, told Mr Powell his group was willing to take part in further talks. It was up to the Orange Order to decide if it would resume talks with the residents. Even if it did not, there might be "some unionists" willing to talk to them face to face, he added.
Late last night Mr David Jones, spokesman for the Portadown District of the Orange Order, cited busy engagements as one reason for being unable to resume talks today, adding that Portadown Orangemen "weren't all like Brendan McKenna who has nothing else to do all day".
In another development, a group of senior Orange Order chaplains yesterday backed the call by the Armagh chaplain, the Rev William Bingham, for the Drumcree protest to be called off after the murders of the three Quinn brothers in Ballymoney.
In a statement, the three grand chaplains and about 15 deputy grand chaplains, said they were "greatly heartened" by Mr Bingham's courage "in defending the sacredness of human life".
The chaplains' statement was warmly welcomed last night by the Archbishop of Armagh, Dr Sean Brady, who said it was a "courageous and generous statement which hopefully will become a significant step on the road to building a new relationship".
Last night the RUC officer in charge of the murder inquiry emphatically denied suggestions by some Orangemen that the murders were not sectarian. Det Chief Supt Hamilton Houston said neither of the two men being questioned about the deaths had any connection to the Quinn family.
"Every possible assistance must be given to police to bring to justice those responsible for what we firmly believe to a savage and sickening sectarian crime," he said.
The Northern Secretary, Dr Mo Mowlam, said yesterday had been was a "very sad" day for Northern Ireland and people owed it to the Quinn children to ensure their deaths were not totally in vain.
At least one blast-bomb and some fireworks were fired by loyalist protesters at police manning the crowd-control barrier at Drumcree early today. A number of plastic-bullet rounds were fired by police in return, the RUC confirmed. About 300 protesters were at the scene at midnight and many of these were leaving early this morning.