The Green Party national council yesterday approved talks with Fianna Fail. A delegation including John Gormley and Dan Boyle will meet today with Brian Cowen, Seamus Brennan and Noel Dempsey. "They have other options, but now we'll see how they see us fitting in, " one Green Party source said. Fianna Fail sources stressed that the party was "open-minded" about a deal with the Greens. A special conference of Green Party members has been set for next Sunday in anticipation of a coalition deal.

An alliance with the PDs and Independents would be the preferred option of Fianna Fail's rural TDs, many of whom have difficulties with Green proposals for the national roads programme, planning law reform and agriculture. Brian Cowen will meet with Mary Harney early this week while contacts have been maintained with key independent TDs.

The prospect of the PDs being included in an arrangement with the Greens and Fianna Fail was being downplayed by Green Party sources, a move which will seriously alarm the PDs. There is a widespread acceptance in the PDs that, if the party is to have a future, it must be in government. As part of a coalition deal, Tom Parlon would be guaranteed a nomination to the Seanad. It is widely accepted that he would then become party leader with a mandate to rebuild the PD organisation. The prospect of a name change has also been tentatively discussed, although there is general agreement that no hasty decisions should be made. Senior party figures concede that the PDs may now be "a negative tag" and there is a view that 'Liberal' should be incorporated into the party's name.