The Left-Green Movement, Independence Party, and Progressive Party will each hold internal meetings today to vote on a proposed coalition government of the three parties.
Coalition talks between four parties have just been disbanded. The chairmen of all four parties have confirmed that the reason is due to the Progressive Party's scepticism towards such a slim majority of 32 seats against 31 in opposition.
Katrín Jakobsdóttir, chairman of the Leftist-Green Movement has just received the President's mandate to lead coalition talks with three other parties. Those parties are the Social Democratic Party, the Progressive Party and the Pirate Party.
Though several parties have expressed their willingness to work with others, it is clear that differences in ideology and the distribution of seats will greatly complicate the process.
Many party leaders believe it is likely an election will take place in October in the wake of the government disbanding last night.