Talks aimed at drawing up a programme for government are understood to have reached the outline of an agreement around the future of energy supplies.
The text of a draft agreement in this area is now being worked on by teams from the Green Party, Fianna Fáil and Fine Gael.
It includes an ambition to go beyond the 70% renewable energy targets currently set for 2030.
A new government would also pass legislation to clear the way for the development of large-scale off-shore wind energy farms.
There would be focus too on making it easier to generate solar energy and then supply it to the National Grid.
A new administration would agree to quickly pass a Climate Action Bill.
There are hopes among some negotiators that the text of a draft agreement might be finalised late next week.
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It comes after a degree of uncertainty had entered the talks process, after the Green Party's deputy leader, Catherine Martin, declared she may stand against Eamon Ryan for the party leadership.
In a statement yesterday evening, the Dublin Rathdown TD announced she will seriously consider a run for the leadership of the Green Party, but only after talks on a programme for government have been concluded.
Mr Ryan has yet to comment on that position.
However, Ms Martin's commitment that government formation talks would not become enmeshed in a leadership contest appears to have calmed many in the Green parliamentary party.
Yet a negotiator from one of the other two parties in the talks process told RTÉ News last night that while they continue to believe everyone in the Greens is acting in good faith, yesterday's developments did add an unhelpful degree of uncertainty.
In the talks themselves, it is understood that the three parties agreed yesterday that legislation on protecting the Irish language needed to go further than the bill proposed in the last Dáil.
Additional reporting: Paul Cunningham