Government formation talks between Fine Gael and Fianna Fáil will resume today in an effort to facilitate a Fine Gael led minority Government.

Sources close to the negotiations have said a temporary suspension of water charges for nine months, is expected to end the political deadlock.

It is hoped this will then pave the way for the establishment of a new Government.

As part of the new deal, it is expected an independent commission will be set up to examine the issue of water charges.

It is understood a meeting of the Fine Gael parliamentary party last night was not marked by any dissent over the proposed deal on Irish Water.