League leader Matteo Salvini and 5-Star Movement leader Luigi Di Maio said talks on a joint agreement - covering issues such as migration, labor reforms and tax cuts - could be ready as soon as Wednesday.
For instance, the EU's Migration and Home Affairs Commissioner Dimitris Avramopoulos said he hopes Italy's policy on asylum seekers does not change under the new government.
The leader of Italy's anti-establishment 5-Star Movement said on Tuesday the policy agenda his party is negotiating with the far-right League is nearly completed and called on the League to have the "courage" to see it through. Italy, along with Greece, has taken the brunt of the Mediterranean migrant crisis and has been credited with saving Europe's honour for its efforts to save lives at sea. Di Maio promised dialogue with the European Union, but warned that "we won't be subordinates to some Eurocrats".
Brussels calls on Italy to stay committed to the 'European path'
On Wednesday morning Salvini said that negotiations were nearing conclusion, while Di Maio confirmed the two parties could wrap up the "contract of government" within the day.
"The contract is nearly finished", Luigi Di Maio said on Facebook. However, Di Maio made clear that his party's demand that the European Central Bank writes off €250bn of the country's national debt is outdated, while membership of the Eurozone is not called into question.