The prime minister and his Irish counterpart have put a deadline of "days" on achieving a new Ulster peace deal following talks in Downing Street.

The statement came after Tony Blair and Bertie Ahern discussed the latest developments in the attempt to restore devolution to Northern Ireland on Wednesday.

Ahern said the parties were not going to extract any more concessions and must now decide whether to accept the proposed agreement.

The taoiseach told reporters the plans put on the table were "the best the two governments can do" after the extensive efforts that have been made since the Stormont assembly was suspended in 2002.

The suspension followed accusations of IRA spying and a lack of progress on weapons decommissioning.

"Two years on from the institutions collapsing, a year on from the election, three gallant efforts by everybody to reach a conclusion, you have to call it, and we have to call it within a matter of days," he added.

The two prime ministers also held separate meetings in London with Democratic Unionist leader Ian Paisley, Sinn Fein negotiators, the Ulster Unionists and the SDLP on Wednesday in an attempt to come to an agreement that hardliners on both sides of the sectarian divide can sign up to.

Ahern revealed that the governments had received from the DUP and Sinn Fein lists of points on which they want clarification.

He said both London and Dublin would try to provide that clarification this week but both he and Blair would then expect a quick response.

Timetable

But earlier Paisley had said this timetable would not be met. The veteran DUP chief, now leading the largest party in Northern Ireland, is holding out for assurances that acts of decommissioning will be verified independently.

He said the talks had come a "long way" but he did not want to raise hopes.

"I don't want to put in to the minds of people that we have gone from A to Z. We have not. But there has been progress," he said.

Paisley appeared to concede that the IRA could continue to exist in some form, but said it should function as nothing more than an "old boys' association".

Sinn Fein is asking for assurances that policing and human rights reforms will be completed alongside any return to power sharing, while rejecting DUP demands that the 1998 Good Friday agreement be renogiated to make ministers accountable to the unionist majority.

Both Paisley and Sinn Fein president Gerry Adams are also reported to have asked for a £1 billion "peace fund" to accompany the resumption of the assembly.

Paisley also met defence secretary Geoff Hoon in a bid to secure the future of the Royal Irish Regiment.