DUP leader Peter Robinson has sounded an optimistic note on the potential for a breakthrough in the welfare impasse.
The First Minister said progress has been made in recent talks with Sinn Féin aimed at resolving disagreements around the implementation of the Stormont House Agreement.
The pre-Christmas deal was shelved in March when republicans withdrew support for Tory-led changes to benefits.
At the time Deputy First Minister Martin McGuinness accused his partners in government of bad faith.
Although the assembly has since passed a budget that created some breathing space, it is feared that failure to resolve the welfare issue will lead to financial meltdown in the autumn.
Speaking to the Press Association yesterday, the DUP leader revealed that his party and Sinn Fein could make a joint bid to the British government for additional "financial flexibilities".
"We've had talks and Sinn Féin have taken those talks seriously," he said.
Mr Robinson said senior Sinn Féin representatives, including Gerry Adams, Martin McGuinness, Conor Murphy, had been involved in the discussions, while his deputy Nigel Dodds and finance minister Arlene Foster had been part of his delegation.
"The indications are they want to resolve these matters," he said.
"I think time will tell whether there is sufficient reality as to what is achievable to resolve these matters."
The First Minister said the summer talks had focused on remodelling a top-up schemes to factor in further cuts to welfare announced in Chancellor George Osborne's July budget.
He said ways to manage further departmental cuts had also been considered and suggested that further flexibilities from Treasury may be the key to finally implementing the Stormont House package.
"I think there are some flexibilities that the government could offer us which would make it a lot easier for us to control our budget and to stay within our spending totals."
But he said an agreed approach from the executive was vital before making such a request to London.
Sinn Féin education minister John O'Dowd said the Conservative government's "austerity agenda" was at the root of the executive's difficulties.
He said the north's elected representatives had a responsibility to challenge the "Tory ideology of cuts".
"We need a united approach from the Executive parties as the best way to achieve progress in delivering a workable and sustainable budget and protections for the most vulnerable in our society," he said.
"To that effect we are working to resolve outstanding issues and will continue to do so."
But SDLP leader Alasdair McDonnell, whose party is also opposed to the welfare changes, said "backroom deals" between the DUP and Sinn Féin would not resolve the dispute and would damage relations with other parties.
"The roots of the welfare impasse lie squarely with the Conservative government who have steadfastly refused to recognise the distinct, unique and sensitive conditions in Northern Ireland which merit a more sympathetic approach," he added.
