Boris Johnson has threatened to tear up part of his own post-Brexit deal in a bid to stabilise peace in Northern Ireland, as he warned the situation is "now very serious".
Fears of political turmoil and civil unrest have been rising amid indications the newly elected Stormont assembly could be put on pause until Christmas.
The Prime Minister spoke to the Irish premier Micheal Martin about the Northern Ireland protocol on the phone today, with the pair agreeing on the importance of restoring the administration as soon as possible.
The PM went even further to say the recent elections had demonstration that the protocol included in the post-Brexit deal he secured was not sustainable in its current form.
"Despite repeated efforts by the UK Government over many months to fix the protocol, including those sections related to the movement of goods and governance, the European Commission had not taken the steps necessary to help address the economic and political disruption on the ground," a Downing Street spokesman said.
"The Prime Minister reiterated that the UK Government would take action to protect peace and political stability in Northern Ireland if solutions could not be found."
An Irish Government spokesman said the Taoiseach had urged Mr Johnson "to engage in intensified EU-UK discussions to address issues relating to the implementation of the protocol".
The spokesman added: "He set out clearly his serious concerns at any unilateral action at this time, which would be destabilising in Northern Ireland and erode trust."
Sinn Fein's Stormont leader Michelle O'Neill has insisted an Executive must be formed now, adding: "The public here can't be a pawn in the British Government's game of chicken with the EU."
Earlier, Foreign Secretary Liz Truss was reportedly set to move to discard large portions of the Northern Ireland Protocol after giving up on Brexit negotiations with the EU.
Officials working for Ms Truss are said to have drawn up draft legislation to unilaterally remove the need for checks on all goods being sent from Britain for use in Northern Ireland, according to reports.
The law would also ensure businesses in Northern Ireland are able to disregard EU rules and regulations and remove the power of the European Court of Justice to rule on issues relating to the region, the paper said.
Importantly, the Bill would override the protocol agreed by Mr Johnson in 2019 and mean the UK had breached its obligations under the Brexit agreement.
Ms Truss is understood to have concluded talks with the EU and has been told the proposed Bill could lead to a trade war with the bloc, the Times reported.