The move was taken amid fears of serious public disorder on the Garvaghy Road.

The Prime Minister, Tony Blair, in Belfast for crucial talks on the future of the peace process, has appealed for calm.

"We will carry on working for a solution that treats both communities with respect," he said. "Until such a solution is found, it is vital that people continue abide by the law."

Valerie Jones reports: "They're not giving up"

Hundreds of extra troops have been drafted into the province for Sunday's parade at Drumcree.

In its formal decision, the Parades Commission prohibited the march from proceeding beyond Drumcree Parish Church, or from entering the entire length of the Garvaghy Road.

Its Chairman, Alistair Graham, welcomed what he called the positive movement by the Orange Order in recent discussions.

He said if its more flexible approach had been introduced at an earlier stage in the year as part of a genuine and sustained attempt to engage with the nationalist community, it might have led to a different outcome.

He also urged the Portadown Orangemen to lift their protest activity and to continue the engagement with the Garvaghy Residents Coalition.

Mr Graham said: "There is a right to parade as there is a right to protest, but these rights are not absolute."

The announcement came after Mr Blair held separate meetings with Portadown Orangemen and Garvaghy Road residents on Monday.

The talks were being held in a bid to reach local accommodation, ahead of a Parades Commission ruling on the march later that day.

The Orange Order want to march along the mainly nationalist Garvaghy Road in Portadown, following a church service at Drumcree parish church.

Sinn Fein spokesman Pat Docherty: "Where the Orangemen's marches are in contentious areas they must enter into dialogue."

But many residents are against the march, and this has led to scenes of confrontation in recent years.

Little optimism after hours of talking

On Monday there was little optimism about agreement being reached, when both sets of participants emerged from discussions.

A spokesman for the Garvaghy Road residents, Breandan MacCionnaith, said that there had been no proposals on the table.

"There has been no progress and it is unlikely that there is going to be any more progress," he said.

He also denied claims by Northern Ireland First Minister David Trimble that the participants in the talks were close to a deal.

Portadown Orangemen have expressed their "bitter disappointment" at what they describe as the "failure of the Garvaghy Road Residents Coalition to respond to initiatives from the prime minister and David Trimble."

A spokesman for Portadown District claimed Mr Blair had acknowledged during their talks that the Orangemen had been " flexible and positive".

"The residents seem content to hide behind the decision of the Parades Commission," he added.

Valerie Jones reports: "In preovious years it has been a flashpoint of violence and anger"

The Parades Commission had originally planned to announce its decision, in the absence of any local agreement between Orangemen and the Garvaghy Road residents, at 1030 BST.

But it delayed the decision until 1730 BST to ''allow time for any further discussions to continue''.

Talks at Stormont led by First Minister and Ulster Unionist leader David Trimble ended after seven hours, without finding any local accommodation to the Drumcree impasse, on Sunday night.

Mr Trimble asked the independent commission to delay its decision, because he said a ruling would end any chance of getting a local agreement, before the parade.

Breandan MacCionnaith: Delay will cause anxiety

However, a spokesman for the Garvaghy Road residents, Breandan MacCionnaith, said delaying the decision would ''cause major anxiety, not only in the nationalist community in Portadown, but right across the North".

Serious violence has surrounded the parade and annual July protests by Orangemen on Drumcree hill for four years.

In 1997 the RUC and army forced the parade through the Garvaghy Road.

Last year Orangemen were banned from walking along the Garvaghy Road route by the commission and were prevented from doing so by the security forces.

The SDLP's Brid Rodgers said that any ruling by the Parades Commission must be accepted.

She said: ''The commission is there to do a job because of the failure of agreement and the failure of dialogue.

''I presume they would much prefer not to have to make a decision based on the guidelines, based on the situation. I think people need to accept that decision.''

'Orangemen still welcome'

In another development, the Rector of Drumcree Parish Church has renewed his invitation to Orangemen to hold their annual service at the church.

This is despite a ruling by the Church of Ireland Synod, that the lodge should not be made welcome unless they agree to abide by three pledges - to respect the sanctity of worship, obey the law and not use the church property in any protest.

The Reverend John Pickering said: "Anyone who wishes may attend the service next Sunday including Orangemen."

Ulster Unionist Deputy leader John Taylor has welcomed Mr Pickering's decision.

''I am pleased the rector and select vestry have not given in to pressure from the General Synod of the Church of Ireland, which is greatly influenced by southern Irish Parishes and does not represent the democratic will of the Church of Ireland - certainly not those who live within Northern Ireland and who are the overwhelming majority of the church in the island of Ireland," he said.

However, the Dean of Armagh, the Very Reverend Herbert Cassidy, said the Synod decision was taken following concerted efforts to seek a way forward through lengthy discussions with both sides in the dispute.

He added: '''In past years we have seen that civil protest outside the church has led to scenes of violence and that has caused a great embarrassment to church members, all throughout Ireland.''