The Northern Ireland Secretary has granted the DUP and Sinn Fein more time to reach agreement after "further progress" during negotiations to restore devolved government.

James Brokenshire had given the two largest parties until Monday to strike a deal or risk a return to direct rule, but has deferred his assessment for at least another 24 hours.

In a statement, the Tory Cabinet minister said: "The parties have made further progress during the course of today.

"They are making certain additional requests to the UK Government which we need to consider.

"In the light of this, I believe it is right to defer the assessment on whether to introduce legislation to Parliament this week to enable an Executive to be formed.


"The parties will recommence talks in the morning and I will reassess the position on Tuesday night."

Image: James Brokenshire had given parties until Monday to strike a deal

Earlier, Downing Street had said there were still "significant gaps" between the parties, despite the prospect of Westminster having to set Northern Ireland's budget for the first time in a decade.

The DUP had accused Sinn Fein of "dragging their feet" and called on the Secretary of State to bring forward a budget.

A spokesman for Arlene Foster's party said they would not be part of a "bad agreement cobbled together to suit the timetables of others."

But Sinn Fein countered that, insisting a deal could be done if it was "a deal for all in society".

Party negotiator Conor Murphy said: "If the political institutions are to be sustainable then they must be restored on the basis of equality, rights and respect."

Image: Martin McGuinness (L) and Ian Paisley at Stormont in 2007

It was January when Martin McGuinness resigned as Deputy First Minister, bringing to an end 10 years of power sharing between the DUP and Sinn Fein.

He died two months later and the two parties have so far been unable to resolve differences over an Irish Language Act and gay marriage.

A return of direct rule could unsettle the Irish government just when the Prime Minister needs their support to secure a Brexit deal in Brussels.

But the DUP will oppose Dublin having any role in the governance of Northern Ireland and Theresa May needs their support to survive at Westminster.