Hillary Clinton in Caguas, Puerto Rico. (AP)

Washington, May 31 (Reuters): The Democratic Party searched for a compromise over disputed convention delegates from Florida and Michigan today in what could be Hillary Clinton’s last chance to gain ground on presidential rival Barack Obama.

The party’s rules committee waded into the explosive controversy over the two delegations, which are barred from the August nominating convention in a dispute Clinton has made a rallying cry for her nomination bid.

Hundreds of demonstrators, mostly Clinton supporters, jammed sidewalks outside the hotel where the meeting was held, holding homemade signs demanding the delegations be seated at the convention. “Count our Florida votes,” read one sign.

“This is probably the largest rules and bylaws committee meeting we have ever had,” co-chairwoman Alexis Herman said to laughter as the meeting opened.

Clinton faces an uphill battle in the 30-member panel to win her demand that the delegations be seated at the convention with full voting rights. Obama supports alternatives that would seat fewer delegates.

At issue is a rules committee decision last year to strip Michigan and Florida of their delegates because they held nominating contests, both won by Clinton, earlier than party rules allowed.

“We need to respect the 48 states who did not violate the rules,” Democratic Party chairman Howard Dean told the committee.

Dean and panel members held a private dinner yesterday that went well past midnight with no decisions reached. Committee members appeared to be close to a compromise that would seat half of the delegations from each state — a solution that would give Clinton a net gain in delegates, but not all that she is seeking.

Clinton signed a pledge along with the other candidates not to campaign in either state, and Obama took his name off the Michigan ballot. Since winning both contests, Clinton has pressed for the results to be recognised.