Parades at Drumcree have been peaceful for the past three years
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The Orange Order in Portadown has confirmed it is prepared to enter face-to-face talks with nationalist residents of Garvaghy Road.
The move marks a significant change in policy for the lodge which previously refused to talk to residents.
Residents objected to Portadown Orange men using Garvaghy Road on their return journey from Drumcree church each July.
A spokesman for the order said it was prepared to "enter a mediation process with an independent chairman".
In a statement, the spokesman said: "Portadown District has always been willing to find a solution to the Garvaghy Road problem.
"We have intimated by letter to the Parades Commission that we are willing to enter a mediation process with an independent chairman.
'Indication'
"No meetings have taken place, but we are awaiting developments."
A spokesman for Garvaghy Road residents said they had received an indication from the Parades Commission of the possibility of dialogue and were awaiting confirmation.
The Portadown Orange Lodge has not marched along Garvaghy Road since 1998 following determinations by the Parades Commission.
Each July, the Portadown Orange Lodge attends a service at Drumcree church to commemorate the anniversary of the Battle of the Somme.
The parade has been marked by serious violence in the past, but it has passed off peacefully in the last three years.
The Parades Commission was set up in 1997 to make decisions on whether controversial parades should be restricted.
The Orange Institution is the largest loyal order in Northern Ireland.
Its origins date from the 17th century battle for supremacy between Protestantism and Catholicism. Prince William of Orange, originally of the Netherlands, led the fight against Catholic King James.