A Fianna Fáil-Fine Gael-Green coalition is set to ban landlords from evicting long-term tenants without a clear reason as part of a 'new deal for renters'.
As talks on a programme for government look set to drag into the weekend, the parties were last night attempting to finalise a housing package that it is expected will include plans to introduce so-called tenancies of indefinite duration.
Many elements of a draft programme for government are still not agreed, however, including agriculture, pensions, the economy and climate change, including the crucial 7pc emissions reduction target.
Fianna Fáil wants to conclude a deal today but there is widespread expectation that negotiations will drag into the weekend.
While Fianna Fáil sources stressed there was no agreement on the overall housing package, it is set to include commitments to a mix of cost-rental and affordable-for-purchase housing - key demands of the Greens and Fianna Fáil.
A legislative change, already proposed by Fine Gael last year and backed by the Greens, would scrap existing laws that allow landlords to evict a tenant without reason after six years and bring in tenancies of indefinite duration.
The Greens have argued for removing the sale of a property as a reason for ending a lease. However, this will not be agreed to by Fine Gael.
Fianna Fáil and Fine Gael also want to set up a commission on housing to consider referendums on the right to housing and capping land prices - moves that are being met with resistance by some in the Green Party who believe it will delay housing reforms.
The role of the Land Development Agency (LDA) remains a sticking point with the Greens who are concerned by what they view as Fianna Fáil's and Fine Gael's desire to hand over tranches of public land to private developers.
A Fianna Fáil source involved in negotiations said the Greens were "hung up" on the role of the LDA and insisted this can ultimately be defined in forthcoming legislation.
A senior Fine Gael source said the dispute on housing was more fundamental than that and "doesn't just pertain to the LDA".
Fine Gael has previously been critical of the Greens' demand for public housing only on public land.
The parties have made progress on transport with the programme for government to include a commitment that capital spending will be 2:1 in favour of public transport projects over road-building.
Fianna Fáil wants the existing roads maintenance budget ring-fenced from this and argues that the Greens will see major investment in cycling and walking infrastructure.
Sources said a budget of up to €360m per year could be allocated in this area - well above the €128m last year.
A Fine Gael source said talks are "going well" and "progressing" but "sticking points" remain, including the Green Party's demand for a 7pc-a-year cut in emissions.
Remarks by Climate Action Minister Richard Bruton suggesting Ireland could end up like Denmark "which has committed to high ambition but cannot specify all of the pathway" were said to be a "clear attempt to reach out to the Greens". But the source conceded the message wasn't necessarily well received.
The question of how to reduce emissions in the agriculture sector has not yet been resolved, but a Fianna Fáil source said that progress had been made yesterday.
Fine Gael has been pushing for a 'REPS 2' package of new payments to farmers who engage in environmentally friendly and sustainable farming practices.