Krisjanis Karins, a candidate for prime minister from the center-right New Unity party, has been leading the talks since the attempt by Aldis Gobzems from KPV LV party to form a government failed earlier this month.
Karins had asked the potential coalition partners to come up with their proposals for the distribution of ministerial portfolios in his five-party cabinet.
After KPV LV nominated Gobzems as their candidate for Latvia's next interior minister, Karins announced he "would not form a government with Gobzems as the interior minister".
Karins said he would continue the negotiations with the parties until Friday in a bid to reach an agreement on a stable majority coalition that would include New Unity, the New Conservative Party, KPV LV, the liberal alliance For Development/For and the right-wing National Alliance.
KPV LV representative Atis Zakatistovs said that his party would stand by Gobzems as the candidate for interior minister and would not name another candidate.
He also called on Karins to publicly explain the reasons for rejecting Gobzems as interior minister.
Without KPV LV, the Karins-led coalition would only have 50 votes in Latvia's 100-seat parliament, which would make passing decisions difficult.