The Taoiseach and the British Prime Minister are holding talks with the Northern parties today.

Enda Kenny says he's cautiously optimistic an agreement can be reached.

Tanaiste Joan Burton, Foreign Affairs Minister Charlie Flanagan and Minister of State, Sean Sherlock, will also attend today's talks.

The Taoiseach and David Cameron will meet in private this morning before joining the talks with the North's political parties.

It's the latest element in a series of negotiations involving the Northern parties and the two Governments as efforts to reach agreement are intensified, on flags, parades and the past, as well as outstanding issues related to the Good Friday and St Andrews Agreements.

He says while he recognises there are complex and difficult issues to be addressed, the parties have engaged constructively - and with a renewed effort, an agreement could be reached which would offer a brighter future for the people of the North.

While Minister Charlie Flanagan is optimistic of a deal by Christmas.