Fine Gael has decided to prepare for opposition in the next Dáil after a long meeting of its parliamentary party.
A number of TDs said they don't want to enter a grand coalition with Fianna Fáil, and Fine Gael will step back from government negotiations.
The cabinet meets this evening for the first time since the election and will stay on in a caretaker role until a new government is formed.
Speaking after last night's meeting, Taoiseach Leo Varadkar didn't rule out a coalition with Fianna Fáil as a last resort.
