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The two party leaders — Brian Jean of the Wildrose and Jason Kenney of the Progressive Conservatives — are expected to speak to the deal at a news conference later today.
Any deal would still have to be approved by a majority of members in both parties.
The Wildrose has previously said it will need 75 per cent or more of its members to OK the deal while the Progressive Conservatives say they will require a simple majority of 50 per cent plus one.
A group of representatives from both parties has been meeting for the last two months to hammer out a deal.