Italian President Sergio Mattarella has urged Italy's political parties to back a "neutral government" or face another vote.
The country has been stuck with a hung parliament since the 4 March ballot, which saw anti-establishment 5-Star emerge as the biggest single group, while an alliance cobbled together from a number of rightist parties including the anti-immigrant League took the most seats.
As both parties fell short of a majority a government could not be formed, and after a third round of consultations with party leaders, Mattarella decided there was no room for a coalition deal.
But Italy's two largest parties, the far-right League and 5-Star have already rejected the proposal for a "neutral government," heightening the likelihood of a return to the polls as early as June.
Mattarella still urged the parties to get behind the plans, as he will appoint the "neutral" administration this week.
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If it achieves parliamentary backing, then the government will draw up a budget for 2019 designed to push back an increase in sales taxes that would be triggered if the deficit slips further.
"Let the parties decide of their own free will if they should give full powers to a government … or else new elections (should be held) immediately in the month of July or the autumn," Mattarella said in a televised statement.
But in response to the proposal, 5-Star chief Luigi Di Maio tweeted: "We have no faith in a "neutral government", which is synonymous with a government of technocrats. We are going to vote in July."
The League leader Matteo Salvini added: "There is no time to lose, there is no space for technocrat government."
YouTrend pollsters explained that under Italian law, the earliest date for an election would be 22 July, although as this is a time when many people are away on their holidays, this could have a significant impact on the result.
Silvio Berlusconi's Forza Italia said it wanted to discuss the situation with its allies, warning against a rushed election.
"We are not afraid of an election, but a summer (vote) does not help turnout. Autumn is better," Forza Italia said.
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