Liberal Dutch Prime Minister Mark Rutte on Thursday sought to resolve a dispute within his centre-right coalition government over providing shelter to thousands of failed asylum seekers.

More meetings with the junior coalition partner Labour Party had been scheduled for Thursday afternoon after talks ran past midnight on Wednesday, but the discussions were postponed until Friday, the parties said. No explanation was provided.

The issue deeply divides the ruling parties and has the potential to trigger a political crisis. The government teetered on the verge of collapse late last year after a healthcare bill was blocked in the Senate.

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