Green Party negotiators this evening agreed to join a Fianna Fail-led coalition and will put proposals to members tomorrow.
After ten days of intense negotiations, agreement was reached at around 8.30pm this evening on a draft programme for government.
However, Taoiseach Bertie Ahern and Green Party leader Trevor Sargent have yet to discuss the plan and are due to meet tomorrow.
The proposals are due to be brought to the Fianna Fail Parliamentary Party tomorrow at 3 pm while the Green Party will convene a special delegate conference at the same time where two thirds majority support is needed for the party to enter the proposed coalition.
While the distribution of government departments was not agreed, it appears the policy differences which dogged the negotiations have been overcome.
The terms of the deal had not been released at the time of writing and both parties were keen to present the programme to their colleagues before releasing details to the media.
Speaking after the negotiations concluded, one of the Fainna Fáil negotiators, Seamus Brennan said: "We were satisfied that this document would form a basis for government".
He also indicated that the Progressive Democrats, who are widely expected to join the coalition, were "broadly kept aware and briefed" during the negotiations.
"They will receive a final copy of the document and they will be dealing with it overnight," Mr Brennan added.
Speaking on RTE television's Prime TimeFianna Fáil deputy leader Brian Cowen said a policy basis had been agreed but that it was contingent on agreement between the party leaders.
He refused to be drawn on details of what he said was deal that took account of the "workability" of the policies. He also hinted that the distribution of departments would be a matter for the party leaders.
Mr Sargent said party members will debate the proposition at a meeting at the Mansion House tomorrow due to conclude with a vote at 8.30pm.
"It is our members who will democratically decide if the Green Party is to enter the next Irish Government," Mr Sargent said.
"Last Friday, the negotiations had to conclude as insufficient progress had been made. Now, we feel, the roadblocks that existed have been worked through.
"I believe that we have a basis for an agreement on a programme for government," Mr Sargent said.
The Taoiseach has held discussions with the five Independent TDs in the next Dail and has already agreed a deal with Kerry-based Jackie Healy-Rae.
Mr Ahern has insisted since the General Election that he intended to build the most stable government possible and it seem likely that most or all the Independents will be offered deals in exchange for support for his government.
The Dail resumes on Thursday where a vote for Taiseach will be taken. Fianna Fail have 78 seats, the Green 6, Independents 5 and the PDs 2. If all these support Mr Ahern he will have a safe working majority of 8.