The Welsh Government and Plaid Cymru have said they are in talks to create a possible co-operation agreement.
In a joint statement released on Tuesday Labour Welsh Government and Plaid Cymru have confirmed constructive initial discussions have taken place to explore ways of "building a more equal, just and democratic nation for all".
They state that the pandemic, climate change emergency, the consequences of Brexit and the threat to devolution it's "more important than ever that political parties work together."
The statement says "As Wales prepares for a stronger future beyond the coronavirus pandemic; responds to the climate emergency, the ongoing consequences of leaving the European Union, and threats to devolution; it is more important than ever that political parties work together wherever they have common interests on behalf of people in Wales."
"Constructive initial discussions have taken place between Plaid Cymru and the Labour Welsh Government and exploring ways of building a more equal, just and democratic nation for all."
"These discussions are continuing to explore an ambitious co-operation agreement to be based around a number of defined policy priorities and the governance arrangements on which Plaid Cymru and the Labour Welsh Government and can work together to deliver for Wales."
Responding to Welsh Labour and Plaid Cymru’s joint statement regarding a co-working agreement, Welsh Conservative leader Andrew RT Davies MS said:
“You only need look at Welsh Labour's policy programme to see how out of ideas it is. But turning to nationalists with no mandate is an act of desperation and lunacy.
“Meanwhile, Plaid Cymru claim to be a party of change but always deliver for their Labour masters – just look at how little they vote against their budgets.
“The NHS in Wales is on its knees. Children have missed months of school. The economy needs support. Just watch as promises of Covid recovery turn into a nightmarish prospect of state-building and hoarding powers.
“They are both totally divorced from people's priorities.”