UPDATE 1-Italy's PD has "good" initial talks with 5-Star -PD source

Italy's opposition Democratic Party (PD) has held good, initial contacts with the ruling 5-Star Movement over the possibility of forging a coalition, a PD source with knowledge of the talks said on Monday.

The 5-Star's current coalition partner, the far-right League, has said it will present a no-confidence motion against Prime Minister Giuseppe Conte in an attempt to trigger a snap election and cash in on its surging popularity in the polls. Conte is due to address the upper house Senate on Tuesday over the political crisis. He might hand in his resignation immediately afterwards to President Sergio Mattarella or could instead wait for a formal parliamentary vote to unseat him.

There is widespread uncertainty over how the turmoil will end and 5-Star declined to comment on the status of any talks with the PD, saying it was waiting to hear Conte's speech. If Conte resigns, Mattarella will open consultations with all the parties to see if a new administration can be formed. Failing that, he will have to dissolve parliament and call new national elections some 3-1/2 years ahead of schedule.

PD leader Nicola Zingaretti said on Monday his party either wanted to see the formation of a "strong government" with a mandate to reform Italy, or else an early vote, ruling out the possibility of any stop-gap administration. Italy has not held an election in the autumn since World War Two because the final months of the year are traditionally dedicated to drawing up the budget -- a key moment for a country with one of the world's largest debt mountains.

Despite this, League leader Matteo Salvini appeared convinced his surprise move to topple the government would trigger a vote and has appeared wrong-footed by the strong push back from politicians of all colours to avoid an autumn ballot.