The draft bill, which will go before the Assembly in the autumn, will enable the future creation of a Department of Justice and sets out the mechanism for appointing a Justice Minister.

Yesterday's decision moves policing and justice powers' devolution closer but the Executive said that for the devolution from Westminster to take place a specific Assembly resolution will have to be passed requesting the Secretary of State to transfer the necessary responsibilities.

Despite the draft bill passing the Executive, SDLP Social Development Minister Margaret Ritchie lodged a letter of objection to the legislation and the UUP's two ministers also objected in writing although they were absent, with the party claiming that they had only received 24 hours notice of the meeting.

Prior to yesterday's meeting, DUP Finance Minister Sammy Wilson warned the Government it must provide adequate funding for the new Justice Ministry or the devolution will not happen.

The DUP has made clear that it is not only negotiating the financial deal with the Government, but also with the Conservatives, mindful that a change of Government is likely at the next General Election.

In the party's clearest warning yet that devolving policing and justice powers is being endangered by wrangling over money, Mr Wilson said: "Despite many months of detailed discussions on how justice would be financed there is still no sign that the Government is serious about providing the necessary funding.

"There should be no doubt that unless this matter is resolved it would be impossible to devolve the functions.

"Indeed, while the Government maintains its present position on the matter, discussion about the devolution of policing and justice functions will remain academic."

In a strongly-worded warning to the Government, he added: "We have approached these negotiations with the Government in good faith but without serious engagement on their part there is little point in our continuing with these discussions and we will have to consider our future approach on this matter in the coming days."

On Wednesday it emerged that Castle Buildings, the building where the Good Friday Agreement was negotiated 11 years ago, will be the headquarters of the new Department of Justice.

Sources told the BBC that plans had been drawn up for the new minister and an estimated 500 staff to be employed by the new department to be based at the building on the Stormont Estate.

Meanwhile, nationalists clashed bitterly after yesterday's Executive meeting.

SDLP Assemblyman Alex Atwood taunted Sinn Fein, claiming that the party was "all at sea" about when the powers would be devolved.

And Ms Ritchie accused Sinn Fein of conniving with the DUP to "gerrymander" the job so that "No Nationalist need apply".