Al Jazeera's Yvonne Ndege, reporting from Abidjan, the Ivorian capital, said there were "high" chances of forming a new government.
"In light of the days of violence we've seen across Cote d'Ivoire ... and in light of the fact that the president of Cote d'Ivoire ... has come under intense international pressure to try and end this political crisis, the chances of seeing a government formed today are actually very high indeed," she said.
"This really has to work to bring Cote d'Ivoire out of this crisis and I guess the opposition feel that their backs are against the wall"
Yvonne Ndege, Al Jazeera's correspondent
"We're hearing from sources who're part of the negotiations and mediations that the opposition have tentatively agreed to do what they said they wouldn't do, which is to recognise Laurent Gbagbo as the president; to recognise a new government and to recognise a new electoral body."
But our correspondent added that "there're several very key unanswered questions", including what composition the new government will take.
"We understand - speaking again to our sources - that the oppisiton are setting some conditions," said Ndege.
"This really has to work to bring Cote d'Ivoire out of this crisis and I guess the opposition feel that their backs are against the wall, and they really have to make some compromises in order to end the problem."Deadly protests
Violence triggered by protests across the West African country has left at least seven people dead in the last week.
The protests came after top opposition leaders refused to join a new coalition government, hampering efforts to form a new government that had been expected to be announced on February 22.
The crisis began when Gbagbo dissolved the government claiming the electoral commission committed fraud.
The move will cause presidential elections to replace him, which were due to be held no later than next month.
But the chances of elections taking place next month "are next to nil", said our correspondent.
Ivory Coast has been divided between a rebel-controlled north and a government-controlled south since war broke out in 2002.
The sides formed a unity government in 2007 and were preparing for presidential elections when Gbagbo dissolved the government on February 12.
Presidential elections have been postponed every year since 2005, when Gbagbo's term ended.