Looks like there is real movement – Gus O’Donnell has joined the Cabinet Office negotiations. A meeting has just been called for the Liberal Democrat MPs and crucially their Federal Executive tonight at 19.30.

It seems that a Tory/Liberal deal is nearly ready to be put to them.

Just nine members of the Federal Executive could cause a real headache. If they, or fifteen MPs, vote against the deal then this has to drag on until the weekend where Clegg would need the support of a simple majority of members at a Special Conference. Very doable but a long delay.

UPDATE : 25 minutes later Sky and the BBC now reporting the meeting. Lib/Lab talks are over. You read it here first.

UPDATE II : Cars are being packed up on Downing Street. Labour are spinning that the negotiations never got off the ground.

UPDATE III : Standard splash that “Brown Quits as Prime Minister!“