Conte will summon members of the government to a meeting on Tuesday morning to announce his decision.

He then goes to President Sergio Mattarella to submit his resignation.

Italian media and Reuters have source information that the goal is to seek a new mandate from Mattarella to make a new attempt to form a government.

It would be the third constellation led by the non-partisan Conte.

Searched for constructivity

The Italian government lost its majority in parliament this week when the Living Italy party, led by former Prime Minister Matteo Renzi, chose to withdraw from the co-operation.

Prime Minister Conte then tried to seek the support of "responsible" and "constructive" opponents in the Chamber of Deputies and the Senate, who could imagine giving the government the support it needs.

He seems to have found some of these in the Chamber of Deputies, where he passed two votes, but in the Senate he has not found enough.

By resigning - and seeking a new mandate to form a government with the president - Giuseppe Conte could give himself more time and space to negotiate.

Another reason for the resignation could be that a symbolically important vote awaits in the Senate on Wednesday.

It is initially a report on the Italian judiciary, but in the current situation it can be interpreted as another kind of vote of confidence and there the government would be voted down.

Berlusconi not included

The opposition, with the right-wing populist Lega in the lead, has demanded Conte's resign with the hope of bringing about a new election.

Opinion has shifted since the last election and the Lega would probably get much more support in such, just like its coalition partner Italy's brothers, which stands even further on the right wing.

It has been speculated that Conte would try to attract ex-Prime Minister Silvio Berlusconi's opposition party Cheers Italy to a collaboration, but Berlusconi made it clear earlier on Monday that this was not the case.

The current government includes the populist and direct democratically placed Five Star Movement, the Social Democratic PD and the left-wing group Free and Equal.

It took office in the autumn of 2019, after a Conte-led and unruly coalition between the Five Star Movement and the League broke up.