Fine Gael negotiator Paschal Donohoe has said that the two main parties are working hard to reach a deal.
Teams from both parties are meeting again this afternoon in a bid to form a minority government.
“We are all working hard to come up with concepts and principles that will do the right thing by the country and will be acceptable to our party,” he said.
Fianna Fáil negotiators say they are hopeful of a deal on forming a Government in the coming days.
“That’s the plan, that’s the hope,” said Fianna Fáil TD Barry Cowen.
“But I mean, from our perspective, no more than Fine Gael’s perspective, nothing is agreed until everything is agreed."
However several issues, such as the future of Irish Water, still have to be settled.
“To be fair to everybody involved in the negotiations and the talks, it’s one of many issues that we continue to seek agreement on,” he said.
Labour leader Joan Burton has warned her party to be prepared for a second General Election.
Green Party leader Eamon Ryan and the Social Democrats' Stephen Donnelly are also anticipating a return to the doorsteps.
“They’ve got to sort out the Irish Water issue – if they don’t do that, as far as I can see, there would be an election,” said Deputy Donnelly.
“Well, I think you’d be foolish not to be thinking about another election, sadly,” said Deputy Ryan.