The Orange Order last night (Thursday) rejected an offer from nationalist residents on the Springfield Road to allow a contentious parade past Catholic homes.
Nationalist residents had last week put forward a five-point initiative to allow Orangemen to march through the nationalist area.
The initiative was based on nationalists dropping objections to the parade if the Orange Order agreed to parade through the grounds of the disused Mackies factory to emerge on to the Springfield Road away from the contentious part of the route.
But an Orange Order spokesman last night said that while the nationalist residents' offer had been studied, it had now been rejected.
"The five-point proposals put forward by nationalist residents was discussed in great detail at a special meeting of the relevant lodges.
"However the order does not feel that the Mackies proposal is acceptable because of safety issues and more importantly because police have informed the commission that they are opposed to it on security grounds."
The spokesman said that the order also rejected any restrictions that the numbers involved in the parade be reduced or that restrictions should be imposed on the playing of music.
In reference to nationalist residents calling for paramilitary trappings to be banned from the parade, the order spokesman said that while it was opposed to the UVF of the present day, it fully supported the UVF of 1912 and the right to commemorate that organisation.
"We will abide by the determination of the Parades Commission, although we clearly feel there is no need for a commission in Northern Ireland anyway.
"This is only once a year and the parade only takes a short period of time to pass, but if people want to be offended, they will obviously be offended."
Residents' spokeswoman Frances McAuley said that nationalists would wait until they were officially informed that the order had rejected their compromise before issuing any statement.
The spokeswoman said that the residents group had reaffirmed its commitment for compromise during a meeting with the commission yesterday, while pointing out that the order was still refusing to enter into face-to-face talks with nationalists.
A Parades Commission spokesman last night said there would be no decision on the Springfield Road until Monday in the hope that a compromise could be found between nationalist residents and the order.
Meanwhile tensions along a north Belfast flash point were last night rising ahead of a contentious Orange Order march past nationalist homes in North Belfast tonight.
The Parades Commission is to allow two loyalist bands to march past a sectarian flash point at Ardoyne this evening, which has been the scene of serious rioting in recent years.
The Ligoniel True Blues LoL 1932 and Earl of Erne LoL 647 have been given permission to march from the Woodvale Road past nationalist shops on the Crumlin Road to Ligoniel this evening after having taken part in the Tour of the North parade around north Belfast.
Speaking after a meeting with the Parades Commission yesterday, Sinn Féin councillor Margaret Mc-Clenaghan called on the commission to reverse the decision ahead of tonight's march.
"This is another example of the Orange Order being rewarded for their refusal to engage in talks with the nationalist residents of Ardoyne and Mountainview.
"It also another slap in the face for the residents as the Orange Order and their supporters flouted restrictions placed on last years marches past this interface.
"This has the potential to undermine work that has been ongoing to ensure that there is less trouble at interface areas and that residents can enjoy a peaceful summer.