Joint declaration was published after assembly elections postponement

The Independent Monitoring Commission is also expected to ensure that assembly members operate within the Good Friday Agreement.

Speaking on BBC Northern Ireland's Inside Politics programme on Saturday, Paul Murphy acknowledged unionist concerns over the role of the Irish government and hinted efforts were being made to address this.

"I think I can understand the issues that various people are dealing with," he said.

"It's a very sensitive area, and when we draw up arrangements for this body, we will take that into account.

"I think that when people see the detail of the proposals, they won't be disappointed."

Earlier this month, former Ulster Unionist deputy leader Lord Kilclooney warned that he would oppose any moves to nominate a representative from the Dublin government to a new body to supervise the Northern Ireland Assembly.

In a letter to The Times newspaper, John Taylor said the Good Friday Agreement could soon collapse because of Irish involvement in the internal affairs of the assembly.

The Independent Monitoring Commission formed part of a side deal between the two governments.

It arose out of discussions on the joint declaration earlier this year involving London and Dublin and the political parties.

The commission can make recommendations to the governments about sanctions, if it believes a party or an individual assembly member has been in breach of its obligations.

The commission stemmed from demands by the Ulster Unionist Party for effective sanctions against those who breach the Agreement.

Sinn Fein says a sanctions mechanism already exists within the Good Friday Agreement to deal with breaches, and insists the commission is itself a breach of the accord.

Published in May, the joint declaration outlined plans to reduce troop numbers to 5,000 as part of an attempt to move the Northern Ireland political process forward.

The joint declaration included five annexes dealing with security normalisation, policing and justice, human rights and equality, on-the-run paramilitaries and mechanisms to verify and monitor any deal.

The document was published after the prime minister postponed elections to the Northern Ireland Assembly which were due to take place on 29 May.

Northern Ireland's devolved administration was suspended last October amid allegations of IRA intelligence gathering in the Stormont government.