Deputies from Hillsborough Castle are currently engaged in proximity talks with representatives from the Portadown Orange Order and the Garvaghy Road Residents' Coalition.
The discussions take place in an upstairs room at the castle, a space that serves as a sitting room under normal circumstances.
This marks the third consecutive day that negotiations have been held at Hillsborough Castle regarding the Drumcree dispute.
Both parties are expected to move into the same room for direct engagement with the secretary of state later in the session.
The Orange Order members departed Drumcree Church overnight, marking their first exit since the stand-off commenced.
Deputy District Master Alastair Power returned to the church on Wednesday morning.
The scheduled parade was permitted after three distinct legal hearings spanning thirteen hours from late Saturday into early Sunday.
Since 1998, the Parades Commission has repeatedly denied the Orange Order permission to complete its route through Derry City.
The event had been due to proceed for the first time in nearly three decades following a series of judicial challenges.
In the 1990s, the Drumcree march was associated with some of the most severe disorder recorded in Northern Ireland's history.
Legal representatives for the Garvaghy Road Residents' Coalition submitted a new application on Tuesday to halt the procession.
Members of the Orange Order remain in position awaiting the commencement of their authorised parade along Garvaghy Road.