A NEW government could be formed in the Republic as early as today the Taoiseach said, as Fine Gael continued to talk to Independent TDs yesterday.
Earlier yesterday caretaker Taoiseach Enda Kenny declared a new minority government could be "signed off tonight or tomorrow morning".
His party remains locked in talks with two factions of Independents, in a bid to form an administration more than two months after the Republic went to the polls.
Arch rivals Fianna Fáil agreed at the weekend to effectively support a Fine Gael-led minority government from the Opposition benches in return for some concessions.
The deal, to be reviewed at the end of 2018, has paved the way for Mr Kenny to be re-elected premier - which would be a first for his party - if he can secure the support of at least another six TDs from outside his own ranks.
Party negotiators are trying to woo two groupings of 11 Independents.
Despite several Independents casting doubts on a deal being struck this week, Mr Kenny voiced his optimism.
"I can confirm that (talks with Independents) are progressing with a sense of urgency," he told the Dáil yesterday.
"I'd like to think this matter could be concluded this week, but obviously I'm not in a position to confirm that finally.
"But I do hope that today's discussions, that are currently under way following on from the discussions and agreement with the Fianna Fáil party, can be brought to a conclusion and that the matter could be signed off on tonight or tomorrow morning."
Mr Kenny added: "Hopefully that can be reached - I can't guarantee it, but the discussions are very real and are progressing with a sense of urgency."
The Republic has been locked in a political stalemate since the February 26 general election split the vote.
Bitter rivals since the civil war, Fine Gael and Fianna Fáil, who have swapped power for generations, balked at pressure to form a "grand coalition".
Attention is already being focused on how long a new minority government will last.
Under the arrangement, Fine Gael will have to rule and Fianna Fáil oppose without either of them undermining the other too much.
