The SNP and the Scottish Greens have entered formal talks in Edinburgh with a view to forming a minority administration.
The PA News Agency understands that both parties have had constructive discussions which would see them hold minority control of the City of Edinburgh Council.
Earlier on Tuesday, both the Greens and the SNP entered a working agreement which will allow an administration at Glasgow City Council to be formed.
No party in the capital comes close to holding a majority following the local government elections on Thursday, May 5.
The SNP had previously been in coalition with Labour in Edinburgh since 2017, but they have since ruled out any deal.
Councillor Adam McVey, leader of Edinburgh’s SNP group, said: “I am happy to say the SNP Group has begun formal negotiations with Green colleagues with the aim to form a coalition.
“The election saw the SNP returned as by far the biggest party and there is broad support for the progressive ideas we have to take Edinburgh forward.
“The SNP and Green groups are having constructive discussions about how we can work together to implement the policies that we campaigned for and that our residents voted for. These meetings have been positive and focused on the further progress we can deliver for Edinburgh.
“We believe this coalition gives Edinburgh the best way forward to tackle climate, fight poverty and improve the core services we all depend on.
“The city deserves clear and strong leadership and I am confident we can provide that. We look forward to continuing discussions with Green councillors to explore how we can make sure the capital has a fair and successful future.”