Conte handed in his resignation after lashing out at far-right Interior Minister Matteo Salvini for pursuing his own interests by pulling the plug on the ruling coalition with the anti-establishment Five Star Movement (M5S)
Italian President Sergio Mattarella begins talks with key players on Wednesday in a bid to end Italy's political limbo the day after Prime Minister Giuseppe Conte resigned.
Conte handed in his resignation after lashing out at far-right Interior Minister Matteo Salvini for pursuing his own interests by pulling the plug on the ruling coalition with the anti-establishment Five Star Movement (M5S).
As president, Mattarella wields important powers including the ability to dissolve parliament, call elections and pick prime ministers.
Here are some of his options to forge a way out of the political crisis:
Negotiations between Italy's deeply divided parties would be difficult, although a new alliance between M5S and the centre-left Democratic Party (PD) is being discussed.
This would torpedo Salvini's plan to force elections and become prime minister, and lead to a new government without his anti-immigration League.
In a bid to get a PD-M5S alliance off the ground - previously almost unthinkable - former PD premier Matteo Renzi has said he will not participate.
Many in the anti-establishment party view him as elitist, so this potentially opens up the possibility of talks.
Romano Prodi, the former centre-left premier and ex-president of the European Commission, has proposed a unity government involving M5S, the PD and Silvio Berlusconi's centre-right Forza Italia.
This would effectively team up the main parties in coalition against Salvini.
After a year of Salvini's highly critical anti-EU rhetoric, Prodi said the new coalition would allow a "reintegration of Italy as an active member of the European Union."
The government would likely be welcomed in Brussels.
Mattarella is responsible for verifying the viability of a new government coalition, based on proposals from political parties.
If he believes no stable majority exists to govern, he may decide to call a snap election, possibly at the end of October.
This would grant Salvini his wish, with polls suggesting his League party and right-wing allies could win.
Salvini could be crowned prime minister with the League in coalition with the anti-immigration, anti-LGBT Brothers of Italy, and Forza Italia.
Alternatively, Mattarella could decide to appoint a new caretaker administration.
This government of technocrats would manage day-to-day business ahead of a new election, probably next year.
This would allow to pass next year's budget to avoid an automatic rise in value-added tax that would hit the least well-off the hardest.
Although extremely unlikely, a reconciliation between the League and M5S can't be totally ruled out.