Chief Executive Tung Chee-hwa is considering a landmark move to share power with leaders of at least two main political parties in his new cabinet.
Mr Tung is exploring the option of giving membership of the Executive Council to leaders of the Liberal Party and the Democratic Alliance for the Betterment of Hong Kong after the new accountability system comes into place in July.
They would become 'ministers without portfolio' in Exco, which will have a membership of about 12, including eight ministers with policy responsibilities.
The party representatives would help ensure support from their party colleagues in the Legislative Council when policies and bills are tabled to the legislature for approval.
The Liberal Party now holds eight seats in Legco, while the DAB has 10.
Sources said Liberal Party chairman James Tien Pei-chun had held discussions with Mr Tung twice on the idea of forming a 'ruling coalition' between the Government and 'friendly parties'. Others said a formal offer had yet to be made.
Last night, a senior government source said the idea of a ruling coalition was at an initial stage. 'Mr Tung has been talking to major political parties to explain the accountability system and seek their support,' he said.