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Theresa May and Leo Varadkar hold crunch talks at Stormont

Theresa May will visit Belfast today. Picture by Stefan Rousseau/PA Wire
Theresa May will visit Belfast today. Picture by Stefan Rousseau/PA Wire Theresa May will visit Belfast today. Picture by Stefan Rousseau/PA Wire

British Prime Minister Theresa May and Taoiseach Leo Varadkar are holding crunch talks at Stormont amid growing speculation that a deal to restore powersharing is edging closer.

The pair are spending the afternoon in Belfast in a joint push to help end the 13-month political stalemate.

The leaders arrived at Stormont House before lunch, ahead of a bilateral meeting to discuss the impasse.

While both Sinn Féin and the DUP have acknowledged that progress had been made, a DUP source has played down expectations of a deal being finalised on Monday, suggesting to the Press Association that if an agreement does materialise it is more likely later in the week.

In a clear sign that the dynamic at Stormont has shifted gears, the Taoiseach has cancelled a scheduled meeting with Welsh First Minister Carwyn Jones in Dublin on Monday in order to head to Belfast.

Downing Street said Mrs May will tell the parties that her government is ready to introduce legislation to enable the re-establishment of a devolved Executive as soon as possible, if an agreement is struck.

Ahead of the meetings at Stormont, the prime minister met aircraft workers at Bombardier's Belfast factory in the wake of the company's trade battle victory in the United States.

It is the first time the prime minister has been to Northern Ireland since July 2016 when she met the then first minister Arlene Foster and deputy first minister Martin McGuinness.

Her visit comes after Sinn Féin gave its clearest signal yet that a deal to restore the Stormont executive could be in place within days.

Speaking on Saturday at the party's special ard fheis in Dublin, newly-appointed deputy leader Michelle O'Neill said differences with the DUP remained but that they could be resolved.

Ms O'Neill has previously indicated that the talks will conclude this week, regardless of whether there is a successful outcome.

It is understood the parties will continue talking today with the negotiations expected to intensify towards the end of the week.

Newly-appointed Sinn Féin president Mary Lou McDonald will join her party's negotiating team at Stormont, however, it is understood that Tanaiste Simon Coveney will not travel north until later in the week.

Ms O'Neill said there had been "give and take" in the negotiations so far.

"There is no doubt that progress has been made, but there are outstanding issues which remain unresolved," she said.

The Mid Ulster MLA said she believed the which caused the collapse of the institutions 13 months ago could be resolved "with political will and mutual respect".

Mrs McDonald insisted Sinn Féin was "up for a deal".

"We are committed to real power-sharing, to working for agreement with our unionist partners," she said.

"We want the executive and assembly up and running – this can only happen on the basis of equality, respect and integrity for all."

A DUP source last night told The Irish News that progress had been made over the course of last week and that the basis of a deal was in place.

SDLP leader Colum Eastwood welcomed the possibility of a deal but said he would wait and see its contents before giving full judgement.

He said if a deal was secured and negotiations on a programme for government followed, the SDLP would prioritising Brexit, the economy, health and education.

"People understand that simply forming a new executive is not in itself enough – the real change necessary is an end to the cycle of two parties who have proved themselves very good at the art of political stand-off but very bad at the responsibility of government," the Foyle MLA said.

He said any deal must signal an end to the "joint DUP/Sinn Féin status quo".