French Prime Minister Dominique de Villepin was talking to ministers and members of the ruling party on Saturday to put the finishing touches on proposals to try and end the political crisis over a youth labour law.
Opposition and student groups urged the government to recognise quickly that the job contract was dead or they would extend weeks of protests that have shut down schools and universities and sometimes ended in violence.
The ruling party is expected to present its plans on Monday after consulting with unions and student groups last week.
"It's a weekend of work, consultation and reflection," a source in Villepin's office said.
He was expected to talk with top UMP members, Employment Minister Jean-Louis Borloo and President Jacques Chirac during the course of the weekend.
The conservative government is trying to end the crisis over the CPE First Job Contract that has sent Villepin's popularity tumbling, weakened him within the ruling party and stoked a fierce rivalry with Interior Minister Nicolas Sarkozy ahead of the 2007 elections.
Two newspapers reported on Saturday that the plans were ready on Friday but the fighting between Villepin and Sarkozy led to a delay in the announcement. Those close to Sarkozy have said he wants the government to suspend the CPE part of the law.
Villepin has rejected speculation he would resign by promising to battle to the end in the fight for new jobs.
Backers say the CPE will help cut youth unemployment of 22 percent by bypassing existing French labour law that makes it hard to sack anyone with a fixed contract. Critics say the contract will add to job insecurity.
Opposition Socialist Party politicians were due to meet on Saturday in the western town of Rennes, where the protests against the new contract have been particularly strong. "If a decision is not taken before Monday, the unions will meet and call for protests," Henri Emmanuelli a socialist deputy said in Rennes ahead of the meeting.
Students planned protests for Saturday afternoon in Rennes town centre. Overnight they occupied a post-office sorting building, disrupting some mail to the west of the country. Easter holidays began in some parts of France on Saturday and some students said their action could lose steam as they take a break. They are hoping the government will abolish the CPE, as they have demanded, before classes resumed.
But students at Jussieu University, the largest in the capital, said they had voted on Friday to blockade again on the first day classes resumed after the break.
"People are still mobilised and a clear majority is still in favour of continuing the blockade," said Eddy Liaib, 23, a Jussieu student.