THE Taoiseach, Bertie Ahern today offers an olive branch to the Green Party in an attempt to reopen negotiations with a view to forming a Government on Thursday. Mr Ahern is now expected to make direct contact with the Green Party leader, Trevor Sargent to establish if the two men can finalise a Programme for Government.

There is a strong view within Fianna Fail that significant progress was made after six days of intensive talks between the two parties, and that further progress can be achieved.

In an article in today's Sunday Independent, Mr Ahern sets out Fianna Fail's green credentials.

He states: "Of course, we do not have a monopoly of wisdom and an essential part of any meaningful negotiation is being genuinely open to new ideas and to the real concerns of the other side."

He also said the Green Party brought forward some "good ideas" in the area of climate change. In relation to other core policy issues of importance to the Green Party, Mr Ahern said the Greens' clear positions on transport, health and education were "not incompatible" with Fianna Fail's positions.

He said: "For now, further discussion would be required for the two parties to reach a position where they could be both assured that the mix of their policies would be politically sustainable, economically feasible and in the national interest."

However, Mr Ahern is understood to be determined that a Government will be formed on Thursday - with or without the Greens.

He has maintained parallel talks with the Progressive Democrats' leader, Mary Harney, and with four independent TDs. Yesterday, the Taoiseach said he had a "good discussion" with Ms Harney this weekend in relation to the basis on which a Government could be formed.

Mr Ahern will have sufficient support to be elected Taoiseach on Thursday, although he would clearly prefer the stability offered by the six Green TDs. In the unlikely event that he is not elected Taoiseach on Thursday, Mr Ahern then has the option of approaching Labour with a view to securing its support.

The Greens' leader, Mr Sargent has said that while "many areas of common ground" have been identified, it was not possible "at this time" to construct a Programme for Government that met with the minimum policy objectives of both parties.

However, he has left open the prospect of further contacts between Fianna Fail and the Greens. There is also a strong view within the Greens' negotiating team that a deal could be reached.

However, Green Party sources are dismissing speculation of a split in the party over Mr Sargent's decision to call a halt to the talks on Friday. The Sunday Independent understands that the party's chief negotiators, John Gormley and Dan Boyle, believed further progress could have been made, and that they were prepared to continue discussions late on Friday night and even yesterday morning.

However, Mr Sargent concluded that the differing approaches between the parties to tackling climate change, funding education and implementing government reform were insurmountable.

Fianna Fail is now hoping that the Taoiseach's negotiating skills will persuade Mr Sargent of the merits of entering government.

Mr Ahern remains determined that the Progressive Democrats will form part of such a Government, to be supported by independent TDs, Jackie Healy-Rae, Beverley Flynn and Michael Lowry.

Although she was maintaining her silence this weekend, it seems certain that Mary Harney would be willing to enter a coalition agreement with Fianna Fail and the Greens, convinced by Mr Ahern's argument of the need for stable Government.

If the three parties came together they would have a combined strength of 86 seats, supported by three independents, providing a comfortable 12-seat majority.

A vote on the election of a Taoiseach takes place in the Dail on Thursday.

Mr Ahern, therefore, will be aware that he will have to act quickly to remove the remaining obstacles that both sets of party negotiators were unable to surmount.

It is thought likely, therefore, that he will make direct contact with Mr Sargent either today or tomorrow.

If Mr Ahern and Mr Sargent are able to reach agreement, it still leaves the Greens with the difficulty of hastily arranging a special convention to have such an agreement endorsed.

However, the Sunday Independent understands that the Greens' backroom consultation team, which was last week liaising regularly with Mr Gormley and Mr Boyle, is representative of a cross-section of the party.

If that consultation team finds acceptable a deal possibly agreed by Mr Ahern and Mr Sargent, it is expected the required two-thirds majority of the party membership will readily endorse it.

It is entirely possible that Mr Sargent was banking on a subsequent direct approach from Mr Ahern when he called off the negotiations on Friday.

He spoke of the "cordial and constructive meetings" between both teams of negotiators and highlighted "clear areas of agreement" which had been reached.

He also said the Greens remained "committed to forming a government" and would continue to explore all avenues with this in mind.

The only realistic prospect of the Greens entering government is with Fianna Fail (and the PDs), as there is no certainty that it would fare any better in negotiations with Fine Gael and Labour.

Indeed, there is a belief within the Greens that its core policies could be further diluted in any, albeit unlikely, Rainbow alternative involving Fine Gael and Labour - a Government which would be dependent on all five independent TDs.

By stating the "current deal" on offer from Fianna Fail was "not sufficient", Mr Sargent effectively told the Taoiseach to contact him.

Mr Ahern is now expected to do so. While he will go further than he had mandated his negotiating team to go towards meeting the Greens' position, he will expect Mr Sargent to maintain a realistic approach.

If Mr Ahern believes Mr Sargent is being unrealistic, the Taoiseach is certain to press ahead to form a Government with the support of the PDs and four independents, including Finian McGrath.

- JODY CORCORAN