Liberal Democrat Leader Nick Clegg leaves his home in Putney, London.

Nick Clegg will today address Liberal Democrat MPs as he attempts to gain their backing for his negotiating strategy which could secure a power-sharing deal with the Conservatives.

Senior figures from the two parties met last night to begin talks on Tory leader David Cameron’s “big, open and comprehensive” offer to work together in government and force Gordon Brown out of Number 10.

After the General Election produced the first hung parliament in a generation, Mr Cameron promised a committee of inquiry on reform of the electoral system – long a key Lib Dem demand – while shadow foreign secretary William Hague, a member of the Tory negotiating team, said that Cabinet places could also be on offer.

But despite the tantalising prospect of real power, Mr Clegg faces a hard sell to his own party — many of whom remain instinctively hostile to the Conservatives.

Following a meeting last night between Mr Clegg and other senior party figures, energy spokesman Simon Hughes indicated that the talks with the Conservatives could take some time.

Secure

“It is going properly, carefully and respectfully, respecting the views of the British people,” he said.

Earlier, however, Mr Hughes warned that simply creating a committee of inquiry on voting reform would not be enough to secure an agreement and he questioned whether Mr Cameron could actually deliver real change.

David Cameron today - he's got the bread and newspapers, but what he doesn't have is a majority

After another turbulent day on the markets, Mr Cameron made clear that he hoped a deal could be secured quickly to reassure investors that Britain had a strong and stable government. He set out areas where he believed there were grounds for co-operation between the parties.

At the same time, however, he warned that he would not be prepared to compromise on issues of defence, immigration, and tackling the deficit in the public finances, where there remain significant differences between them.

Meanwhile, Mr Brown made clear he had not given up hope of striking a deal with the Lib Dems that would enable him to remain in office, despite losing more than 90 seats in the election.