There are mounting indications that economist Mario Monti will be tapped to head a transitional government to push through even more difficult reforms.
Italy is facing a Greek-style economic crisis that many fear would threaten the existence of the entire eurozone and cause a global recession.
Monti has been pushed by markets for weeks as the most suitable figure to lead a national unity government to urgently push through further austerity measures.
Al Jazeera's Simon McGregor-Wood reports.