Italy inched closer towards ending more than two months of political deadlock on Thursday as anti-establishment Five Star Movement leader Luigi Di Maio said an agreement would likely be reached on forming a coalition government with the far-right. 

Di Maio said earlier that all outstanding matters had been settled in talks with Matteo Salvini, the leader of the nationalist and Eurosceptic League, except for the issue of their joint prime ministerial candidate. But speaking late Thursday in northern Italy, he went further saying; "I am very confident, we have created the basis of the government and the name of the prime minister will not be a problem." 

Salvini, meanwhile, pledged that on Monday the two parties would be in a position to formally present President Sergio Mattarella with the results of the talks. 

The two parties have been locked in negotiations over a "Contract for the Government of Change," a document setting out policies and how the proposed coalition would work. 

President Mattarella must agree to the parties' prime ministerial nominee before the candidate seeks the approval of parliament. 

The March 4 inconclusive elections in Italy saw Five Star Movement emerge as the largest single party after gaining nearly 33 percent of the vote, while the League – shorn of the rest of the rightwing coalition that won 37 percent – will be the junior partner with 17 percent.

In the past two months, the two parties have been haggling over various issues, namely immigration, in order to find the middle ground to form a coalition.   

Meanwhile, a version of the "Contract," from Tuesday evening, was leaked to daily Il Fatto Quotidiano. That document contains a proposed "conciliation committee", a structure parallel to the parliament which would be responsible for settling any disagreements between the two parties on issues like immigration and Italy's relations with Europe. 

It proposes that European Union sanctions against Russia be dropped immediately, and includes a watered-down EU section that no longer talks about exiting the single currency but asks that unspecified "certain responsibilities" be repatriated to individual member states. 

Domestically there are pension reforms, the introduction of a basic income and a section questioning 10 obligatory vaccines for children attending state schools.