Update 6.53pm: Fine Gael TDs and Senators have been told this evening that the vote for Taoiseach will go ahead as planned, despite wide speculation that it was to be deferred writes Irish Examiner Political Editor Daniel McConnell.

At lunchtime, it was widely anticipated that the vote would not go ahead because of a lack of progress in the talks between Fine Gael and Fianna Fáil.

Several Fine Gael ministers had stated their preferred view was that the vote should be deferred if no winner was to emerge.

However, at a meeting of the Fine Gael parliamentary party in Leinster House this evening, Mr Kenny moved to quash the speculation, saying the vote will proceed.

As a result, Mr Kenny is likely to fail for the third time since the General Election to be re-elected.

Several sources from both Fine Gael and Fianna Fáil have indicated that discussions with Independents on trying to form a Government are set to last at least another seven days.

Talks between the two main parties are also set to continue for a number of days with issues of policy not yet arrived at.

Sinn Féin President Gerry Adams said he will seek to have the vote deferred tomorrow in a bid to end the “sham process” which is ongoing.

Update 5.46pm: It has emerged that senior Labour Party TDs met with Fine Gael last night.

Joan Burton, Alan Kelly and Brendan Howlin were briefed on Government formation by Enda Kenny and Michael Noonan.

It is unclear if the meeting was an attempt to persuade Labour to reconsider participation in Government or to get the seven Labour TDs to vote for Enda Kenny for Taoiseach.

Earlier: The expected vote for Taoiseach in the Dáil tomorrow looks likely to be postponed, senior sources have suggested, writes Irish Examiner Political Editor Daniel McConnell.

It had been expected that the vote would be deferred if sufficient progress between Fine Gael and Fianna Fáil had not been made, and sources close to the process have confirmed a conclusion is not yet in sight.

The Fianna Fáil negotiating team left Leinster House in the direction of Government Buildings shortly after 12 noon to recommence the third day of talks.

Today's discussions are expected to centre on key policy issues such as Irish Water, housing and health.

Speaking on his way into Government Buildings, acting Health Minister Leo Varadkar said the parties were aiming to try reach agreement today, but conceded he could not forecast if that was possible.

He did stress that some progress has been made, but did not specify any details as to what is involved.

Negotiators met for around an hour this morning and will meet again this afternoon.

According to sources, the broad parameters on how a minority Government would work both in terms of Government and Opposition were explored.

Junior Sports Minister and Mayo TD Michael Ring said TDs had a duty to form a Government in the interests of the country.

"I'm not sure whether these talks will be completed by tomorrow. We need a Government," he said.

"People have elected 158 TDs and we all have a responsibility to formulate a Government and we need to do that quickly and we need to get up and running as a Government.

Asked about Irish Water, Mr Varadkar said the parties had agreed that they stood the best chance of succeeding if all negotiations took place across the table and not in the media.

This morning, the Irish Examiner reported that Fine Gael is willing to concede ground on Irish Water in order to secure agreement with Fianna Fáil.

Update 3.50pm: Sinn Féin will put forward a motion to postpone the election of a Taoiseach if it looks likely that the vote will be inconclusive.

Party president Gerry Adams says that no one can be elected tomorrow and that the sitting is just another “charade”.

“What we don’t need is another charade of a Dáil sitting to tell us what we already know - that neither Fine Gael nor Fianna Fáil can form a minority Government tomorrow,” he said.

“Sinn Féin is of the firm view that we should have a proper sitting of the Dáil tomorrow to discuss legislation and motions, and that it should not sit to facilitate another bout of playacting from the two largest parties, who know well they don’t have the numbers to form a Government.

“Whilst there will be statements on housing at the insistence of Sinn Féin, there are other important issues impacting on the lives of citizens that the Dáil should be dealing with, including health, water charges and industrial disagreements in a number of sectors.”