Tony Blair and Irish premier Bertie Ahern are today set to review progress on the stalled peace process.

Amid mixed predictions about the hopes of a breakthrough, the two leaders will examine whether elections for the devolved assembly can be held before Christmas.

Speaking ahead of the meeting, Sinn Fein's leadership played down the possibility of a deal.

Despite predictions that the IRA was set to deliver a significant move on weapons decommissioning, chief negotiator Martin McGuinness said crucial obstacles still existed.

Sinn Fein has been in conversation with both governments ahead of the meeting between the taoiseach and the prime minister.

McGuinness said elections should go ahead regardless of whether a deal was done.

"Our discussions with the two governments and the UUP have focused on the need to secure firm commitments - guarantees - on the implementation of the Good Friday Agreement and the sustainability of the institutions," he said last night.

"The rejection by the two governments of substantive initiatives earlier this year from the IRA, and then by the Sinn Fein president Gerry Adams, and the decision of the British prime minister Tony Blair to twice cancel elections, inflicted enormous damage.

"On top of this the negative effect of the establishment of the so-called Independent Monitoring Commission in breach of the Good Friday Agreement cannot be over estimated."

He added that there was "enormous resentment" among republicans and nationalists at the decision.

But Ulster Unionists are more upbeat about the prospects of progress.

Speaking on Friday David Trimble said he was ready to meet with republicans - but stressed that the IRA would have to act within days.

"There's only a week or so left for progress to be achieved as I understand the timetable," he said.

"Let's hope that at some point we see the progress that is needed in terms of dealing with continuing paramilitary activity with acts of completion that are needed to enable the assembly to be resumed."