Italy’s President Giorgio Napolitano addressing the media
Italian President Giorgio Napolitano has announced that he plans to invite a select group of people to propose a platform of policies that may end the impasse in forming a new government.
Napolitano said the names would be released later.
His announcement ended speculation that he might resign after political parties failed to agree a coalition government after February's inconclusive election, reports the BBC.
Napolitano said he would serve out his mandate that ends in May.
Italy has been governed by a group of technocrats led by Mario Monti since late 2011 - when centre-right leader Silvio Berlusconi resigned in the middle of an acute economic crisis.
The president finished consultations with Italy's main political leaders on Friday.
In the absence of agreement, Italian analysts had said Napolitano was contemplating quitting to enable a successor to try to form a new cabinet or dissolve parliament and call new elections.
But the president said he planned to stay on "to the end".
He was, instead, going to ask "two small groups of personalities" to formulate "precise programmatic proposals" that could be supported by political parties - and serve as a basis for a new cabinet.
There has been talk of the possibility of the president ultimately seeking to form a temporary, technocrat-style administration, says the BBC's Alan Johnston in Rome.
But for the moment nothing is clear, except that Italy's political paralysis continues, our correspondent says.