Fianna Fáil leader Micheál Martin has told Independent TDs the time has come for them to declare their support for either him or Enda Kenny as taoiseach.

Mr Martin contacted all 15 Independents in talks with both parties Wednesday evening and urged them to vote for either a Fine Gael or a Fianna Fáil-led Government.

His move came after a scheduled discussion on policy between Fine Gael and Fianna Fáil was cancelled.

It is understood, however, both parties are still open to further negotiations.

No further meetings have been planned but it is anticipated contact will be made between the two parties on Thursday.

Mr Martin has told Independents that, in the absence of a commitment from Fine Gael that it will support a Fianna Fáil-led minority government, he is not willing to continue in discussions with non-party deputies.

A Fianna Fáil source said Mr Martin will give up on pursuing a Fianna Fáil minority government if he does not secure an additional seven or eight TDs in the vote on Thursday.

Similarily, a significant shift to Mr Kenny would allow Fianna Fáil to acknowledge Fine Gael can form a minority government which Mr Martin will facilitate from the opposition.

Sources in both parties said the process of forming a government had dragged on for too long and needed to come to a swift conclusion.

The possibility of a second election in the absence of enough Independent TDs declaring for Mr Martin or Mr Kenny was being speculated upon in Leinster House.

A Fianna Fáil source said: “It would require a significant number of Independents to vote for Micheal Martin as taoiseach. One or two will not be enough.

“If they want to support a fine Gael minority government that is their choice but we need to know. We are on a roundabout with no exits so the time has come. This is their final opportunity.”

A Fine Gael source said the talks with Fianna Fáil would resume after the vote for Taoiseach on Thursday.

“Fianna Fáil want to allow any Independnets who want to jump in their favour one last chance to do so,” the source said.

The Independent Alliance will meet on Thursday at 11.30 am to decide whether to vote for Mr Kenny or Mr Martin.

However, members of the group said they saw no reason to declare for either party and are likely to abstain in the vote.

Waterford TD John Halligan has opted out of the discussions with both parties.

The five rural TDs of Denis Naughten, Mattie McGrath, Michael Harty, Michael Collins and Noel Grealish will also meet on Thursday to discuss what they should do.

It is expected they will vote against both candidates as will Independent TD Danny Healy-Rae.

Mr Kenny had been hopeful the vote on Taoiseach could be deferred but he needed the support of Fianna Fáil and said this was not forthcoming.

The two parties only met for an hour on Wednesday to discuss the mechanics of a minority government with a meeting scheduled for 8pm to exchange policy papers.

However, it was cancelled at short notice by Fianna Fáil in a move described as frustrating and disappointing by Fine Gael.

The Fine Gael parliamentary party had earlier passed a motion urging the leadership not to compromise on Irish Water in discussions with Fianna Fáil.

It is understood legislation prepared by Fianna Fáil to abolish Irish Water has been agreed by the party and is expected to be handed to Fine Gael within days.

The proposed legislation will suspend the charges for five years and abolish the utility in favour of a slimmed down firm.

Meanwhile, Mr Kenny and Minister for Finance Michael Noonan met with senior figures in the Labour party on Tuesday to secure their support for a Fine Gael minority Government.

The meeting, which was attended by Tánaiste Joan Burton, Minister for Public Expenditure and Reform Brendan Howlin and Minister for the Environment Alan Kelly, took place in Government Buildings.

It is understood Mr Kenny and Mr Noonan encouraged Labour to re-enter Government but the Labour figures rejected the proposal.

Fine Gael also requested the party support them from the opposition benches.

The three Labour Ministers insisted they could make no decision until the outcome of discussions between Fine Gael and Fianna Fail were known.