Drumcree Church has been the scene of the protest
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Behind the scenes contacts have been made to try to settle the Drumcree dispute, Ulster Unionist leader David Trimble has confirmed.
The BBC learned on Tuesday that under Orange Order proposals, there would be one more parade march along the contentious route through the Garvaghy Road in Portadown in return for talks with the residents.
Under the proposals, any future march would require the consent of the residents.
The Portadown Orange Lodge's annual parade and church service commemorates the anniversary of the battle of the Somme and traditionally takes place on the first Sunday of July.
The Orange Lodge proposal is that the 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.
However on Wednesday, Mr Trimble claimed nationalists were reluctant to engage in serious talks.
"Conversations and attempts that were being made several weeks ago have not made as much progress as we would have liked for the usual reasons," he said.
"Namely there is a reluctance on the part of representatives of the Garvaghy Road Residents Coalition to engage in any serious discussions with anybody."
Mr Trimble said nationalists were reluctant to engage in talks
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However, the Garvaghy Road Residents Coalition criticised Mr Trimble's comments as "unhelpful and spurious".
"As the local MP, Mr Trimble has consistently refused to act in the best interests of all his constituents in relation to this issue," a spokesperson said.
Over the years, there has been serious violence directed against the police and Army at Drumcree.
The order in Portadown believe the meeting with the resident's group should be chaired by the prime minister's Chief of Staff, Jonathan Powell.
Agreement
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.
If that consent is withheld, there would be no resumption of the Drumcree protest.
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.
The Parades Commission has ruled that the parade must not go down the Garvaghy Road after Sunday's church service.
The commission's decision followed 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.