Opening a possible window of opportunity to end the stand-off on the nuclear issue, the Communist Party of India-Marxist on Sunday suggested a mechanism to examine the implications of the controversial Hyde Act as UPA allies favoured an immediate solution to ensure continuance of the UPA government.

The suggestion for setting up of a mechanism to allay fears of Left parties over the American law that can withdraw cooperation with India in case of testing came during a discussion CP-M politburo member Sitaram Yechury had with External Affairs Minister Pranab Mukherjee.

"If they (government) want to set up a mechanism we are ready for that," Yechury said after a meeting with UPA's key negotiator Mukherjee who had called him to seek clarifications on Saturday's politburo resolution which had said that the deal should not be implemented "till all the objections considered and implications of the Hyde Act evaluated."

Meanwhile, CPM general secretary Prakash Karat, who had met Prime Minister Manmohan Singh [Images] on Saturday to serve an ultimatum on the nuclear deal, and his CPI counterpart A B Bardhan made it clear that the bottomline was that the government should not proceed with operationalising the deal.

Ahead of the crucial meeting of the UPA, the government struck an optimistic note of resolving the crisis arising out of the Left's threat over the Indo-US nuclear deal, saying the allies feel that a way out is possible.

"Everyone feels that a way out is possible," Mukherjee, who held confabulations with leaders of UPA allies, said.

Responding to a question on the key demand of the Left that the deal should not be operationalised, he said "you have to find a way out. What is possible, what is not possible. There are different stands on operationalisation".  

The minister chose not to react to Yechury's suggestion for setting up a mechanism.

That concerted moves were being made to de-escalate the crisis became clear when Mukherjee remarked "we are making serious efforts... both sides are engaged in talks on various fronts".

However, after a 30-minute meeting with Mukherjee, Defence Minister A K Antony and senior Congress leader Ahmed Patel, Yechury said there was no compromise formula. "It depends on the government what to decide".

"We have made our position clear," he said adding the government has to address the Left's concerns regarding the implications of the Hyde Act for the country's sovereignty.

The Left parties fear that the Hyde Act passed by the US Congress would bind India into a strategic alliance with the US.

Ahead of the meeting with leaders of UPA allies, Congress president Sonia Gandhi [Images] chaired a meeting of the party's core group to discuss the fallout of the Left threat.