The Northern Ireland Assembly has failed to elect a new speaker, as the DUP and Sinn Féin are at loggerheads over the replacement for the DUP's William Hay in the high-profile role.

The impasse come days after the two parties accepted a UK Treasury loan to avoid breaking the public spending budget for this year.

The DUP promised Sinn Féin the post next as a result of a deal that dates back to Ian Paisley's time as First Minister.

But no one was elected this afternoon after the DUP abstained.

Sinn Féin had expected its South Antrim MLA Mitchel McLaughlin to be elected speaker in his place.

The dispute is the latest to affect the power-sharing administration, which is riven by division over a range of issues.

Father of the House Sam Gardiner, the oldest Stormont representative, said: "As a speaker has not been elected it will be necessary to return to this matter at a further sitting."

In the interim, deputy speakers will continue to chair plenary sessions of the Assembly.

Mr Hay, who was recently elevated to the House of Lords, stepped down as speaker following a bout of ill health.

He commanded respect across the house, with members from all parties paying tribute to his adroit handling of fractious debates.

DUP leader and First Minister Peter Robinson has said the matter should be dealt with as part of inter-party talks that are due to begin this week on issues left outstanding from the peace process.

Earlier this month, the head of the Northern Ireland Civil Service wrote to his counterpart at the UK Treasury warning that Stormont was on course to break its budget as the ministerial Executive was locked in a logjam over the need to cut £220m (€280m) of spending this year, including on welfare.

Chancellor George Osborne agreed a £100m (€127m) loan last week, with a range of conditions.