The IRA has withdrawn its offer to decommission the weapons arsenal which remains an obstacle to peace in the province.

A statement obtained by the An Phoblacht newspaper said the republican group had taken the offer to put its weapons beyond use off the table.

Following deep divisions in the wake of the Belfast bank robbery the IRA claimed the British and Irish governments had "tried its patience to the limit".

The statement, which was issued late on Wednesday, received a frosty welcome from the British government.

A Downing Street spokesman said the statement came as no surprise given the December bank raid.

"The fact remains that it was the IRA that did carry out the Northern Bank robbery and as the prime minister and the taoiseach said on Tuesday therefore it is the IRA that is the sole obstacle to moving forward," a spokesman said on Wednesday.

Privately British sources hope the IRA's statement will prove to be a negotiating chip rather than an about turn in the push for peace.

The IRA's statement, however, signalled the depth of the gulf between the government and hardline republicans.

"Our initiatives have been attacked, devalued and dismissed by pro-unionist and anti-republican elements, including the British government. The Irish government have lent themselves to this," read the statement.