The Loyalist Volunteer Force (LVF) is on the verge of disbanding, it was reported last night, while an announcement concerning the future of the Ulster Volunteer Force (UVF) is expected next week.
The Progressive Unionist Party (PUP) is expected to make an announcement concerning the UVF next week after this Saturday's annual conference in Belfast, from which the press have been banned.
UTV last night reported that the LVF, formed by Portadown loyalist Billy Wright, may be about to end its activities.
The report comes on foot of intense pressure on the LVF from its one-time associates in the UVF which has already shot dead four men since July 1st.
UVF sources have indicated that the purpose of the feud was to wipe out the rival LVF to enable the paramilitary group to assert its support for the peace process.
Disbandment by the LVF will test whether the UVF is genuine in its commitment to follow a non-violent path in support of the political process.
One PUP source declined to comment about any reassessment of the link between the party and the UVF, citing a wish "not to pre-empt anything".
Last month Northern Secretary Peter Hain "specified" the UVF, pronouncing that its ceasefire was bogus. Last July he reimposed financial sanctions on the PUP because of its UVF links, depriving the party of Stormont allowances.
David Ervine, the PUP leader, claimed the decision to fine the party could force its demise. He said the fine was "unjust" and taken on the "basis of shoddy intelligence".
The Independent Monitoring Commission (IMC), which reports on paramilitary ceasefires for the British and Irish governments, said last May that the UVF and the much smaller Red Hand Commando remained active, violent and involved in organised crime. Mr Hain said the report concluded that the PUP had not done as much as it should to exert influence on the groups to end such activities. "The commission recommended that I should continue the financial measures against the Progressive Unionist Party," he said.
Mr Ervine claimed his party was powerless to stop the UVF feuding.
In a special report on the loyalist feud released last month, the IMC said it had taken note of PUP statements indicating it could not stop the feud, but said the party could not have it both ways. The party must dissociate itself from the UVF or accept the consequences, it said. This has fuelled speculation that the party could be reassessing its association with the paramilitary group.