The Prime Minister has unveiled a £800m plan to devolve policing and justice powers to Stormont, promising further aid if paramilitary violence erupts.
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Gordon Brown has held lengthy talks with First Minister Peter Robinson and Deputy First Minister Martin McGuinness.
The Prime Minister's £800m offer is aimed at removing financial hurdles to a final political agreement.
The complex blueprint offers millions in additional funds, deals with major costs hanging-over from the Troubles and paves the way for signature projects including a new police training college.
"Our aim is a peaceful, more secure and more prosperous Northern Ireland," Mr Brown told the House of Commons.
Mr Brown spelt out that government would help tackle any future upsurge in violence by dissident republicans opposed to the peace process.
"I have made provision for the reserve to be available if there are exceptional security needs that arise in any one year", he said.
"We have done so this year because of what happened with the killing of soldiers and the killing of Pc (Stephen) Carroll.
"We will do it in future years if such an emergency or difficulty arises."
Mr Brown added: "A secure Northern Ireland is the key to a more prosperous Northern Ireland and we will take no risks with the security of Northern Ireland."
The letter pledges:
- The Northern Ireland Executive will have access to reserve funds to support policing and justice in the event of exceptional circumstances, while the Treasury will also make available an additional fund up to £37.4m in 2010/11.
- Money will be made available to complete the construction of a new police training college.
- An additional £20m per year to the end of 2012/13 will help overcome a huge backlog in legal aid payments being faced by the court service. A further one-off payment of £12m will ease pressure on the courts, with a promise to provide up to a further £39m if necessary.
- The Government is to gift four military sites to the Stormont administration, including in Omagh where there are plans to use former military-owned land to build a cross-community schools campus.
- Sale of the gifted sites will also help ease pressures such as equal pay claims facing the civil service from a portion of its workforce.
- Changes to financial rules will help address £101m pressure facing police pensions.
- Police officers hearing loss claims, estimated to cost millions, will be met by the Northern Ireland Executive funding the first £12m cost per year, with government helping to meet any cost above that level. Treasury will allow access to financial reserves and may also buy assets off the Executive to help it raise necessary finances up to a level of £60m
'Without delay'
Northern Ireland Secretary of State Shaun Woodward will meet the region's Chief Constable for talks under the plan to ensure frontline policing is protected.
Reacting to the publication PUP Leader Dawn Purvis MLA said:
"In light of the package now being offered by the Treasury and the Prime Minister Gordon Brown, it is incumbent on the First Minister and Deputy First Minister to complete devolution of policing and justice without any further delay.
"The fact that such a budget has been secured, builds confidence in the ability of our ministers to deliver - which in turn means the public can have confidence in the devolution of policing and justice," she continued.
Meanwhile Ulster Unionist leader Sir Reg Empey said he had read the document and would now discuss it with colleagues.
"Until this process is completed, we will be reserving our position on the matter," he said.
"I have said previously, that the UUP agrees with the devolution of policing and justice but we want to see it built to last, not just shift the problem 18 months down the track."
Alliance Leader David Ford who is favourite to take the department ministerial job said he believed the Prime Minister's financial plan represented a reasonable offer.
"This package should enable the outstanding issues to be resolved, though it is not overgenerous regarding the ongoing budget," he said.
"For Alliance, there is a need to build confidence in the community by the Assembly parties agreeing the policies to be implemented by the Department of Justice."
Leader of the hardline Traditional Unionist Voice Jim Allister said he opposed giving republicans any role in overseeing policing and justice.
The Northern Ireland Policing Board has announced plans for a special meeting on Friday where the watchdog will review Mr Brown's offer.
© Press Association