A deal on forming a government in Italy between the 5-Star Movement and the opposition Democratic Party (PD) looked close on Monday after the PD indicated it had dropped a veto on Giuseppe Conte serving another term as prime minister.

Conte, who belongs to no party but is close to 5-Star, resigned last week after the collapse of a 14-month coalition between 5-Star and the far-right League, brought down when League leader Matteo Salvini pulled out.

President Sergio Mattarella has given 5-Star a chance to avert a snap election by forming a new coalition with the PD. Last week he told them to report back by Tuesday, but on Monday he extended the deadline by an extra day to Wednesday.