Delegates from the five main political parties in Northern Ireland are meeting at the Stormont Hotel in east Belfast for the latest round of talks with former US diplomat Richard Haass.
The talks are aimed at resolving a number of issues in the peace process.
Ulster Unionist leader Mike Nesbitt said he believed a positive outcome is possible if everyone shows the will to go for it.
He said the discussions today would begin with a series of bi-lateral meetings with the other parties.
Gerry Kelly of Sinn Féin said the main issues were still about Britishness, Irishness and inclusivity.
DUP delegation leader Geoffrey Donaldson said on his way into the talks that realistically it would be a challenge to produce an agreement on all the outstanding issues today.
Mr Haass, who is keen to secure a deal before Christmas, submitted a third draft set of proposals yesterday.
The latest document states: "We could not reach a common position on the flying of flags".
It is thought a separate process will be recommended to try to resolve the contentious issue.
Meanwhile, former Church of Ireland archbishop Robin Eames, who co-chaired a previous attempt to deal with the legacy of the Troubles, says he hopes the Haass talks will produce agreement and help heal the divisions of the past.
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