The Progressive Democrats parliamentary party has decided to enter negotiations with the Taoiseach on the formation of a coalition Government.
Following a two-hour meeting the party said would now contact the Taoiseach with a view to negotiating the terms for Government.
In a brief statement the party said the result of the general election which returned eight Progressive Democrats TDs to the Dail "constituted a clear mandate for the formation of a coalition Government".
A spokesman for the PD's said the decision to go into coalition had been unanimous and that no terms for the formation of a coalition had been decided.
Ms Harney and the Taoiseach, Mr Ahern, are due to meet next weekend when the details of of a coalition will be hammered out.
Entering the meeting Ms Harney said that for her the most important thing was the creation of a stable government as quickly as possible.
Over the weekend, Ms Harney said she would favour coalition but indicated that at least one of her parliamentary colleagues favours opposition.