Optimism had been high yesterday morning that a compromise could be achieved after the asylum-seekers and church leaders agreed a proposal which would see the men end their hunger strike and vacate the cathedral.

However, the Department of Justice rejected the proposal, saying that the government could not agree to any proposal which would involve "commitments which go beyond what the protesters are entitled to under the asylum process".

The Sunday Tribune understands that the proposal included demands for personal interviews for each of the 41 men with Department of Justice officials as well as a review of the accommodation currently being used to house them.

A department spokeswoman ruled out any negotiations with the asylumseekers and said the matter was now in the hands of the gardai.

Church leaders have withdrawn from negotiations, leading to a direct stand-off between the men and the gardai on the scene.

Gardai were originally aiming to remove the men by 7pm on Friday evening. However, this deadline was postponed in the hope that a settlement could be reached.

It is believed that the men were hoping to end their hunger strike at 10am yesterday morning. However, the rejection of the proposal by the Department of Justice ended hopes of a settlement.

In a statement released shortly after 3pm, the department called on the men to end their hunger strike.

"The department reiterates its position that the hunger strike should be called off and the threat of self-harm withdrawn, " said the statement.

"It is not possible to enter into an agreement involving commitments which go beyond what the protesters are entitled to under the asylum process and which would almost certainly lead to copycat actions elsewhere."

The men are now refusing water and medical treatment and have threatened to commit suicide if any attempt is made to forcibly remove them from inside the cathedral.

Up to 15 of the men are believed to have retaken a position on top of the organ loft inside St Patrick's. The men . . . up to half of whom are thought to be minors . . . are believed to have rope tied around their necks. They have threatened to jump if gardai attempt to remove them.

Rosanna Flynn of Residents Against Racism and Socialist Party TD Joe Higgins were amongst the speakers at a rally outside the cathedral yesterday.

Calling on the Taoiseach to intervene, Flynn accused the Minister for Justice of being "willing to stand back and let people die".

Responding to the department's statement, she said that the asylum process, "is so flawed that even lawyers working for it are calling for a complete re-examination".

The head of the Muslim Council of Ireland, Dr Sheikh Shaheed Satardien, has expressed his concern over the ongoing stand-off and yesterday urged the men to call their strike off.

Speaking to the Sunday Tribune, Satardien claimed the hunger strike could damage relations between Muslim and non-Muslim communities.

"This is very worrying for Muslims in Ireland, " he said. "What would happen if they tried to occupy a mosque? I am not sure they would be welcomed by Muslims to do what they are doing in a Christian cathedral.

"I don't think the protest is in their favour. They are losing the support of the Irish people. The strategy is not working.

If they die they will die unnecessarily. The Muslim community regards this as a fundamentally serious issue in terms of how the community here is regarded."

Tension outside the cathedral is also high and threatened to spill into violence on Friday night when a group of men attacked activists from Residents Against Racism. It is believed the men had been drinking in nearby pubs prior to the incident. Residents Against Racism left the area for the first time on Friday evening in order to avoid similar scenes.

A group of up to 30 people stood outside the cathedral on Friday chanting racist slogans and urging the gardai to forcibly remove the men from the scene.

Chanting "let them die", the group also verbally abused a number of black people walking past the cathedral.

One man called on the government not to give into the demands of the hungerstrikers. David Rafferty told the Sunday Tribune that he has been unable to find employment in Dublin due to the high number of non-Irish workers in the city.

Although Rafferty had worked for many years in London, he rejected all similarities between Irish people working abroad and non-Irish working here in Ireland.