Italian centre-left politician Enrico Letta says he has won support of other parties to form a coalition government, two months after elections.
The government will include one of former prime minister Silvio Berlusconi's closest allies as deputy prime minister.
Mr Letta met President Giorgio Napolitano after talks with Mr Berlusconi's centre-right People of Freedom party, to confirm he has reached an accord clearing the way for a government to be formed.
Bank of Italy director general Fabrizio Saccomanni will take the key economy ministry portfolio and former European Commissioner Emma Bonino will be foreign minister.
The government, which Mr Letta said would contain a record number of women ministers, will be sworn in on Sunday and Mr Letta is expected to go before parliament to seek a vote of confidence on Monday.
The 46-year-old the deputy leader of the centre-left Democratic Party (PD) spent more than two hours on Saturday in talks with Mr Berlusconi, who will not be a member of the government but is likely to play an important backstage role.
Mr Letta is on the right of the PD and the nephew of one of Berlusconi's closest aides, Reuters reports.
Agreement had been held up by wrangling over ministerial posts and policy differences, notably over Mr Berlusconi's demand to scrap the unpopular IMU housing tax, a move that would blow a €8 billion hole in this year's budget plans.
Italy, the euro zone's third largest economy, has been without an effective government for months, with the long post-election deadlock holding up any concerted effort to end a recession set to become the longest since World War II.
