A Spanish regional party on Tuesday put forward a 30-point plan for the formation of a left-wing government shortly before time runs out on a decision over whether new elections should be held.
The move by the leftist Commitment Coalition (Compromis) from the Valencia region has brought new energy into the faltering discussions, even though its chances of success seem slim.
The Socialist Party (PSOE) agreed with most of the plan's proposals, adding its own suggestion that leader Pedro Sanchez could head a coalition government with independent ministers.
PSOE has until now insisted that a coalition government include the Ciudadanos (Citizens) party. Its head, Albert Rivera, however, strongly rejected the latest initiative Tuesday.
King Felipe IV had wanted to wrap up consultations with party leaders over the formation of a coalition government Tuesday night.
Following the briefings, the monarch must decide whether he will suggest a candidate for prime minister or dissolve parliament and set new elections for June 26.
The country has been in limbo since inconclusive parliamentary elections on December 20 in which no party won a clear majority.