Drumcree Church has been the scene of the protest
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The Orange Order has put forward proposals aimed at ending the long-running Drumcree marching dispute.
If the proposals are accepted by the Garvaghy Road residents, it would bring senior members of Portadown district lodge into direct talks with the nationalist residents.
The Protestant Orange Order argues that following the march route - from Portadown to Drumcree Church and back, via the mainly Catholic Garvaghy Road - is a celebration of their heritage. But the residents regard it as provocative.
Garvaghy residents spokesman Breandan MacCionnaith said he had heard nothing about any proposals.
The BBC has learned that under the proposals, there would be one more parade but any future march would require the consent of the residents.
The proposed march would bring to an end the protest which began in 1998 at Drumcree Church, when the homeward route of the Orangemen was blocked by the security forces.
Over the years, there has been serious violence directed against the police and Army at Drumcree.
Before any future parade, the Orange Order would agree to a meeting with residents to discuss the parade and any possible protest.
The order in Portadown believe the meeting should be chaired by the prime minister's Chief of Staff, Jonathan Powell.
Consent required
The proposals - which it is understood the Northern Ireland Office is aware of - do not exclude the possibility of talks between local Orange leaders in Portadown and the residents leader Breandan MacCionnaith.
In future years, Portadown district lodge would continue to apply to walk its traditional route but accepts that the agreement of the residents would be required.
Jonathan Powell is wanted to chair the talks
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If that consent is withheld, there would be no resumption of the Drumcree protest.
Overall, these proposals suggest one more parade along the Garvaghy Road by members of Portadown district but no further processions without the agreement of the Garvaghy Road Residents Coalition.
It is not yet clear how widely the proposals have been discussed within the Orange Order in Portadown and at higher level within the organisation.
A number of sources told the BBC they believed the proposals, which mark a significant shift in the local Orange position, had come too late to resolve this Sunday's Drumcree parade but said it could be the basis for future discussions.
If there are talks, parties have to come to them without any preconceived ideas about the outcome
Breandan MacCionnaith Garvaghy Road Residents
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Breandan MacCionnaith said he had been aware there had been talks between the government and the Orange Order but the Garvaghy residents were excluded.
"The Orange Order wants to march first and talk later," he said.
"If there are talks, parties have to come to them without any preconceived ideas about the outcome.
"But if they are genuine, they should not be coming with this at the eleventh hour."
Earlier on Monday, the Northern Ireland Parades Commission ruled that the parade must not go down the Garvaghy Road after Sunday's church service.
The commission's decision follows objections from nationalist residents and takes account of fears there could be violence.
Last year's parade at Drumcree saw angry confrontations after the march was halted.
The Parades Commission was set up in 1997 to make decisions on whether controversial parades should be restricted.