The Democratic Unionist Party (DUP) has ruled out the prospect of a deal to restore devolution in Northern Ireland before Christmas, the BBC understands.
It has been boycotting Stormont since early 2022 in protest over post-Brexit trade rules.
The government was hoping an agreement on power-sharing could be reached before parliamentary recess on Tuesday.
But a DUP spokesperson said the party would not be “calendar-led” in its negotiations.
It is the biggest unionist party in Northern Ireland and the second biggest party at Stormont, behind Sinn Féin.
There was speculation a restoration deal was close, after leader Sir Jeffrey Donaldson said it was “approaching the time for a decision”.
But the DUP’s position is that the process is not yet complete.
It is also understood the party’s assembly members (MLAs) are not meeting later as they normally do on Mondays.
Over the weekend, posters saying “stop DUP sellout” appeared in a number of locations across Northern Ireland, including outside the constituency office of Sir Jeffrey in Lisburn.
The DUP has been urged by other parties not to hold up a potential return to Stormont and to “seize the opportunity” to restore devolution.
Sinn Féin’s John Finucane said striking public sector workers were “surrounded by uncertainty” over their finances at Christmas and many other people were struggling with the cost-of-living crisis.
On Saturday, DUP leader Sir Jeffrey Donaldson told party members that he would not be “distracted by hype” over a deal.
Writing in an email, he said the financial package did “not deal with our long-term challenges” and that he was hopeful the government would “advance on their offer on Monday”.
The DUP pulled its first minister out of Stormont’s power-sharing executive in February 2022 in protest over the Northern Ireland Protocol.
The protocol was introduced post-Brexit to prevent the need for goods checks along the border between Northern Ireland and Republic of Ireland, which is still an EU member state.
Earlier this year, the trade rules contained in the protocol were eased by the Windsor Framework – a new deal negotiated by Prime Minister Rishi Sunak with the EU.
The DUP has been in closed talks with the government for months over further changes it wants to the framework.
The party believes the current rules, which include additional checks on goods moving from Great Britain to Northern Ireland, are damaging to the economy and undermine Northern Ireland’s place in the UK.
Last week, Mr Sunak said the government stood ready to legislate to “protect” Northern Ireland’s place in the UK internal market.
by denk2mit