Mr Paisley indicated that his party's increased vote has strengthened him against internal critics - and he signalled "progress" in talks about entering an Executive by the Government's March 26 deadline.

But he repeated that ultimately a settlement will "rest with the IRA delivering", a reference to his party's requirement for a greater commitment on policing from republicans.

And he signalled that a power-sharing administration would have collapsed this week over Sinn Fein's comments about the arrest and attempted murder charge against dissident republican Gerry McGeough.

Mr Paisley met Secretary of State Peter Hain yesterday for talks about the restoration of Stormont and expects to meet Prime Minister Tony Blair and Chancellor Gordon Brown today to discuss a financial package.

After yesterday's meeting he said the DUP's increased support - gaining three seats and adding 4% on the vote - had "strengthened my hand".

"I can afford now to go a bit further with things because I am confident the people are with me," he said.

He noted that he had been "severely criticised by various people".

"Some of them are my personal friends but they don't agree with what I've done. The electorate fortunately has agreed," he said.

Mr Paisley's most public criticism has come from fellow Free Presbyterian Minister Ivan Foster, who said before the election that Mr Paisley was " wrong entirely" to contemplate "a coalition with the murderers of Sinn Fein".

But he is also believed to have come under pressure from within the DUP, reportedly clashing with MEP Jim Allister at a party meeting after the St Andrew's Agreement.

And Mr Paisley admitted to a "squabble" within party ranks after 12 senior members signed a statement saying he had not been nominated as First Minister last November, when the Government insisted he had.

After yesterday's meeting, Mr Paisley said: "I think we are making progress, I hope we will succeed in what we are seeking to do. It will rest with the IRA delivering, but I think we are seeing progress and I am encouraged this morning."

However, asked whether devolution would occur by the March 26 deadline, he said: "I can't really answer that.

"We are making progress. I have done all I can do and I have gone more than a second way."

Mr Paisley welcomed Sinn Fein's insistence that anyone with information about two murders in Belfast on Monday should give it to the police.

"It is not enough but it is part of the way," he said, making clear he expected Sinn Fein to do more to satisfy him that it is fully committed to backing policing structures.

Mr Paisley indicated that if he had been First Minister last week he would have stepped down over Sinn Fein's criticism of the police for Mr McGeough's arrest.

Sinn Fein accused the police of "political policing" when they detained the candidate during counting at Omagh.

"I could not have sat in one part of the coalition with the other part attacking the police for making an arrest," he said.

Mr Paisley said achieving a financial package from the Government before the restoration of devolution was all-important.

"We must have a settlement. We have made promises to the electorate and we must seek to fulfil those promises."

He said problems were not insurmountable and predicted that stopping the introduction of water charges next month would be top of his list and was possible.

Meanwhile, the seven-seat Alliance Party Assembly group has formed a " coherent opposition group" with the province's first Green Party MLA Brian Wilson and hospitals campaigner Kieran Deeny.

Sinn Fein's Martin McGuinness said he had written to Mr Hain confirming he was ready to serve as Deputy First Minister alongside Mr Paisley as First Minister, and said the public expectation was that there would be a power-sharing government in place by the deadline.

Ulster Unionist leader Sir Reg Empey said he saw signs of early progress in putting together the economic package which would ease a new Assembly on its way.

Assembly members met in the chamber for just 51 minutes, with only one item on the agenda - registering of members and re-starting their salaries.