ITV Wales National Correspondent Rob Osborne explains to Ellie Pitt what the discussions mean
There have been discussions between the Welsh Government and Plaid Cymru about an "ambitious co-operation agreement".
In a joint statement, they both said the pandemic, the climate emergency, the consequences of Brexit, and the threat to devolution, it’s “more important than ever that political parties work together”
It confirms that they have had “initial discussions” on working together “around a number of defined policy priorities”.
It added: "Constructive initial discussions have taken place between the Welsh Labour Government and Plaid Cymru exploring ways of building a more equal, just and democratic nation for all."
After May's elections, Welsh Labour holds 30 of the 60 seats in the Senedd and relies on support from other parties to pass legislation.
In the last Senedd, Welsh Labour had 29 seats and were joined in government by Liberal Democrat Kirsty Williams and independent Lord Dafydd Elis-Thomas.
The Welsh Conservatives claimed this is an "act of desperation and lunacy" by Welsh Labour.
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.
He added: “They are both totally divorced from people's priorities.”
Leader of the Welsh Liberal Democrats Jane Dodds MS said she will "continue to demand better for ordinary people across Wales and hold them to account."
“Against a backdrop of job insecurity, the rising cost of living, and the coronavirus, people across Wales need to see in practice what this agreement will mean for their everyday lives,” she said.