The grassroots Five-Star Movement and the anti-migrant League party are working on putting together a government that will create more jobs and security for Italians, League leader Matteo Salvini said on Friday.
"We are working on a government that will boost employment and security for Italians, restoring Italy as a leading player in Europe and worldwide," Salvini said.
"This what citizens are asking for - no one should fear change," Salvini added.
Salvini and Five-Star leader Luigi di Maio were on Friday holding talks on a cabinet line-up with populist premier designate, law professor Giuseppe Conte.
After Italy's president Sergio Mattarella on Monday invited Conte to form a cabinet, in his acceptance speech Conte said he would lead "a government of change".
Conte, a political novice, said in his speech that he was “fully aware of the challenges we face” and "the need to confirm Italy’s European and international standing”.
The nascent government between Five-Star and the eurosceptic League would revisit the European Union budget rules, cut taxes and hike welfare spending, lift sanctions against Russia and deport 500,000 migrants - plans that have alarmed the bloc and roiled European markets.