Negotiators from the ANO and Social Democrat parties say they have ironed out all of their fundamental policy differences.
The declaration was made following talks between the two sides on Wednesday aimed at paving the way for a minority ANO and Social Democrat government supported by the communists.
ANO deputy prime minister Richard Brabec said compromises had been found over sick pay for employees during the first three days’ absence and over tax. He did not give details.
The two sides meet again late Thursday where crucial talks over the share out of Cabinet portfolios will be discussed. The outcome of the talks should be put to a special meeting of Social Democrat delegates on Saturday.