The two parties broke the deadlock over water charges last night.
They'll meet again today try and conclude the deal.
Five hours of talks last night broke the deadlock on water charges.
While the two parties haven't signed off on anything, there is a compromise offer on the table.
This would see charges suspended for possibly up to two years, while a commission looks at a future charging structure, which would then be referred back to an Oireachtas Committee and then a Dáil vote.
While further talks are planned today it's now expected the two parties can finalise a deal in the next 36 hours.
Fine Gael would then need to conclude talks with Independents and get at least six more of them on board which would guarantee the re-election of Enda Kenny as Taoiseach in a Dáil vote.
Meanwhile there will be statements on Irish Water in the Dáil for four hours this afternoon – but Sinn Féin says that's not good enough and a vote on charges should be taking place.
