NEGOTIATORS from Fine Gael say they hope they can finalise a government deal with Fianna Fail today.

The two groups have returned to Trinity College to try and put the finishing touches to a government deal.

Frances Fitzgerald said that while there were still some issues to be ironed out, she was optimistic a deal could be reached on those issues in today's talks:

Fianna Fáil says it's still keen to ensure a deal is reached on issues like housing supply and rent supplement.

Barry Cowen denied that his party had only intended to devote one day to those issues, insisting they had actually been raised at earlier stages.

But he insisted that an agreement on those issues would be needed before Fianna Fáil was happy to ask its TDs to approve a deal.

Both sides, meanwhile, have denied that Leo Varadkar's comments yesterday - describing Fianna Fáil's policies as 'insane', and appearing to hit out at his own government agreement - will scupper any deal.

The minister himself said Fianna Fáil had personalised his comments, which he would not do in return.

Fianna Fáil, meanwhile, has dismissed the comments as part of an internal power struggle within Fine Gael, in which it has no interest:

Our political correspondent Gavan Reilly filed this report for Today FM's National Lunchtime News: