The Ulster Unionist leader, Mr David Trimble, insisted yesterday that his leadership was the best and only means of achieving political progress and stability in Northern Ireland.
Sir Reg Empey would make no comment about the talks with Mr Jeffrey Donaldson, while Mr Donaldson said they were about policy and disciplinary matters and not the leadership.
Supporters of Sir Reg, however, said preliminary discussions are continuing between the Donaldson and Empey camps.
Disagreement over who could wrest control of the UUP from Mr Trimble - Sir Reg Empey or Mr Jeffrey Donaldson - is the major obstacle to the formation of the so-called Donaldson-Empey dream ticket, according to Ulster Unionists who believe Sir Reg could unite the party.
The fact that the discussions took place yesterday ahead of tomorrow's crucial Ulster Unionist Council meeting in Belfast must cause some anxiety to Mr Trimble and his supporters, particularly as Sir Reg was previously viewed as Mr Trimble's most trusted lieutenant.
Tomorrow's UUC meeting in the Ulster Hall will discuss a motion calling for the lifting of the threat of disciplinary action against dissident MPs Mr Donaldson, Mr David Burnside and the Rev Martin Smyth.
Supporters of Sir Reg are canvassing for some form of pact between him and Mr Donaldson, possibly at a subsequent UUC, whereby Sir Reg, with Mr Donaldson as his deputy, would seek to take the leadership.
This would be similar to the reputed pact between Tony Blair and Gordon Brown, where it was agreed that Mr Blair would take over from the late Labour leader John Smith but that subsequently he would hand over to Mr Brown.
Sir Reg refused to comment last night when asked if he saw himself as a possible compromise leader.
Hitherto sources close to the Lagan Valley MP said Mr Donaldson would not be prepared to stand aside for Sir Reg in any leadership challenge.
"Jeffrey has a lot of fences to mend because he is also seen as responsible for the divisions. If he were prepared to be the next leader but one, then Reg could heal some of the current wounds. After all Jeffrey is still a young man," said one of Sir Reg's supporters.