Gerry Adams has praised recent efforts by the British and Irish governments to push forward the Northern Ireland peace process.

Speaking in Armagh on Wednesday, the Sinn Fein president warned that his party's grassroots had "little confidence" that the two governments were committed to the Good Friday agreement.

"I am very conscious that the continuous shredding of the agreement may reduce it to the point where nationalist and republicans no longer have any confidence in it as an instrument of change. While a lot of damage has been done we are not at that point yet," he said.

But Adams went on to say that a solution to the current problems could be found.

Despite the recent financial penalties imposed on Sinn Fein as a result of an Independent Monitoring Commission report on continuing IRA paramilitary activities, the Sinn Fein leader said his party's negotiators were continuing "close contacts" with the British and Irish leaders.

He said a "special effort" was needed to bring about a renewed focus on the peace process.

"Sinn Fein is pleased that the two governments have now brought a renewed focus to the process," Adams added.

"I like to think that our party's approach and our tenacious engagements with Dublin and London, after the IMC report was published, helped to bring that about.

"But we are not naive. In the time ahead the actions or lack of actions by the governments can make a bad situation worse."

He added that progress should continue to be made in areas such as equality while talks continue.

In talks held in Dublin at the weekend, the British and Irish leaders said they would continue the search for an agreement on re-establishing the suspended Northern Ireland assembly.

Irish premier Bertie Ahern also said a deal was possible by the autumn.