One of Fine Gael's government negotiators has admitted it may not be possible to reach a deal over Irish Water.

Michael Noonan's comments come as government talks with Fianna Fail verge towards collapse.

Fianna Fáil says a deal is 50-50 at best - and has already had one counter-offer rejected.

Fine Gael says it's waiting for a response on its proposal to suspend water charges while a Commission is set up to examine the future of the system.

It's believed, however, that Fianna Fail has already put forward a counter-proposal which would see it support three Fine Gael budgets if charges were suspended for all of that time - which Fine Gael rejected.

Even if a deal were to be reached, the treatment of those who had already paid bills - and those who had not - would also still remain.

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