Negotiations between Fine Gael and Fianna Fáil are resuming this evening, in a bid to pave the way for a new government.

Irish Water is expected to be the major talking point in the talks between the two negotiating parties.

Earlier Enda Kenny and Micheal Martin discussed the future of the utility, but were not able to sign a final deal.

Fianna Fáil's Michael McGrath signalled the party was willing to reach a compromise on key issues:

Michael Noonan said both parties were keen to compromise but Irish Water remained a major issue: