Labour leader Ivana Bacik is set to meet with Micheál Martin tomorrow following a "positive" phone call this morning.
She will meet with the Fianna Fáil leader on Tuesday but has yet to confirm a time and date to speak with outgoing Taoiseach Simon Harris. This meeting is expected to take place later this week.
The Labour parliamentary party met this morning after Ms Bacik spoke with both Mr Martin and Mr Harris by phone, and members stated that they are in agreement on how to proceed with formation talks.
This comes after a split in the party became apparent last week regarding whether or not Labour should seek to enter a coalition with Fianna Fáil and Fine Gael.
It is expected that Ms Bacik will enter talks with a view to having her party play a "significant" role in negotiating the programme for government and ensuring it takes a key role in how these plans are implemented. Labour is likely to seek ministerial portfolios.
The main party leaders "must engage in meaningful talks" for Labour to enter into any partnership.
Labour has not fully committed to anything, and the party is still hoping to engage in talks about developing a centre-left common platform.
If in opposition during the next Dáil term, the party intends to work on forming a bloc with other left and centre-left parties.
However, the Social Democrats and Green Party remain skeptical about this prospect, as it is unclear what exactly Labour is proposing.
The Social Democrats said its members remain focused on government formation talks, although neither Fianna Fáil nor Fine Gael has reached out to set a meeting.
Neither party has entirely ruled out coming to some form of arrangement with Labour but views it as a moot point while Labour is still in talks about forming a government.
A Labour party spokesperson said Ms Bacik has spoken with Sinn Féin leader Mary Lou McDonald about future engagement, but a number of TDs believe there are too many differences between the two parties for an agreement to work.