The parties have been divided over advice to extend all the restrictions for two more weeks.
Ministers have just begun meeting, after earlier discussions were postponed.
The hospitality sector is waiting to find out whether it can resume trading on Friday after a four-week shutdown.
The current restrictions are due to end at midnight on Thursday.
Derry has been under a fresh lockdown since October 5.
A number of DUP backbench MLAs have previously opposed the Coronavirus regulations agreed by the power-sharing executive, which the DUP jointly leads with Sinn Féin.
Despite meetings on Monday, ministers have not yet been able to decide what should replace them.
Health Minister Robin Swann had brought his own paper to the executive last week, which recommended keeping all the restrictions in place for another fortnight.
Mrs Dodds’ paper suggests close-contact services such as hair and beauty salons can reopen on Friday, by appointment.
It also proposes allowing unlicensed premises such as cafes and coffee shops to reopen on Friday, but licensed restaurants would remain closed until Friday, November 27.
It is understood that the paper also stresses the need for increased visibility of police environmental health officers to manage enforcement.
Mrs Dodds has previously said she did not want the restrictions to be extended, as it could further damage the economy.
It is understood she still holds this view, but recognises that the executive must agree a compromise.
It is also understood that a “safely open group” could be established if ministers agree the plans, that would cover hospitality.
Earlier, the executive was accused of “letting businesses down by the hour” by delaying a decision on extending coronavirus restrictions.
DUP MLA Paul Frew accused Stormont ministers of causing an “act of vandalism” to hospitality firms.
Mr Frew, who has openly criticised his party’s decision-making on the coronavirus regulations before, told the assembly on Tuesday that the delay in announcing a decision was “unbelievable”.
“This is a tremendously harsh time for businesses and yet this executive is causing an act of vandalism to those businesses,” he said during a debate on the Budget Bill.
“It is a shameful position to be in.
“It is an act of vandalism to not be able to tell a business on the Tuesday that they can open up for sure on the Friday, that they can fill up their fridge, bring in their stock and pay their supply line – it’s no way to run a business and no way to run an executive.
“It’s an absolute farce we are letting so many people down, who just want to earn a decent living and who provide so much.”
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