While President Ram Baran Yadav has set Saturday, May 9 as the deadline for the act, other party leaders think it is unrealistic.
The Communist Party of Nepal (United Marxist Leninist) which is seen as the likely party to lead the coalition said that its leaders will be meeting to discuss strategy.
"Our priority will be to set up the new government including all the major political parties,'' the party's general secretary Iswor Pokhrel said. "However, it is unlikely we will reach agreement by Saturday."
However other parties seem to maintain that nothing can be finalised upon in a day.