The Government and the newspapers remain deadlocked after the industry reacted coldly to the latest proposals to establish a new system of press regulation.
The three main political parties meeting at Westminster yesterday agreed a series of changes to the draft royal charter establishing the new system intended to make it more palatable to critics in the industry.
Culture Secretary Maria Miller said the amendments would help safeguard press freedom and urged the newspapers to sign up, putting an end to 11 months of wrangling since the publication of the Leveson report on press standards.
However an industry steering group, representing national, regional and local newspapers, said that while they would look closely at the changes, their fundamental objections had not been addressed.
"This remains a charter written by politicians, imposed by politicians and controlled by politicians. It has not been approved by any of the newspapers or magazines it seeks to regulate," it said.
The steering group statement increases the prospect that a significant section of the press could simply go ahead with its own system of self-regulation, despite the threat of exemplary damages in any legal action newspapers are involved in if they remain outside the official system.
There also remains the option of legal action over the decision earlier this week by the Privy Council to reject a rival royal charter put forward by the industry, raising the prospect of many more months without agreement.
The latest text - amending the charter agreed last March in late night talks with the parties and the Hacked Off campaign group - will now go forward for final approval by the Privy Council on October 30.
The changes include provision for a "small" fee for use of a new arbitration service, intended to deter speculative claims, with the option for regional and local newspapers to opt out altogether following a trial period.
They also agreed that serving editors can be involved in drawing up a new code of conduct for the press, to be approved by the independent regulator.
Mrs Miller did not rule out the prospect of further changes, if they could be agreed by the political parties.
"I am very clear that we have published a final draft today but if there are things that come forward which all three parties feel merit attention, then of course we'll be looking at that," she said.
However Harriet Harman, who represented Labour at the talks, said the industry should drop its objections, adding there must be "no press boycott".