Iraq's powerful Shia Alliance is expected to make a decision today on whether it would yield to pressure from Kurdish and Sunni leaders and drop Ibrahim al-Jaafari as its choice for prime minister.
The outcome could determine if a deadlock over forming a unity government can be broken four months after elections.
Political sources said President Jalal Talabani, a top Kurdish leader, has informed a committee from the alliance that the Kurdish bloc's decision to reject Mr Jaafari was final.
Iraq's Prime Minister Ibrahim Jaafari speaks during a news conference in Baghdad yesterday
The Kurds and Sunnis accuse Mr Jaafari of monopolising power and failing to improve security.
"I think the majority of other groups, or all the other groups, are rejecting Dr Jaafari as prime minister," Mr Talabani said last night, adding they might accept Mr Jaafari in a post such as vice-president.
Iraq's acting speaker of parliament said he would call on the assembly to convene in the next few days, raising the possibility the political paralysis may end.
"The Iraqi people are impatiently waiting for this issue to be resolved. When the parliament convenes it will be possible to start the steps to form a national unity government," Adnan Pachachi said.
As the biggest bloc in parliament, the Shia Alliance has the constitutional right to nominate a prime minister, but Mr Jaafari also faces fierce opposition from senior officials within the alliance.
Replacing him could put severe strain on the uneasy Shia Alliance at a time when Iraq needs a united leadership to tackle insurgent violence and ease sectarian tensions.