NICOLA Sturgeon is “optimistic” a co-operation agreement will be struck in the coming weeks with the Scottish Greens, The National can reveal.

Talks have been ongoing between the two pro-independence parties since the election with negotiations expected to last most of the summer recess.It is hoped a deal can be unveiled in late August or early September after MSPs return to Holyrood.

“We are optimistic about the discussions which we expect to continue into and through the coming recess,” a government insider told The National.

“We hope to be in a position by the time parliament resumes to have a clearer idea of what the new relationship will be between the two parties and how those will be constituted”.

When she unveiled the “groundbreaking” talks in a post election statement to Holyrood, the First Minister said she would seek to get agreement with the Greens on policy areas including climate change and the environment.

READ MORE: SNP leadership face rebellion over co-operation agreement talks with Scottish Greens

But she also indicated there may be areas where agreement was “challenging”. “What we hope to achieve is potentially groundbreaking,” she said. “I am confident that those policy areas will include the climate emergency and how we can accelerate our progress to net-zero. However, we are keen to identify other issues, too – not just those on which we have a similar outlook but those on which co-operation would be more challenging for both of us.”

The SNP’s and Scottish Greens’ election manifestos differed on tax with the smaller party backing plans for a wealth tax, which would see a 1% levy on the property, land and pensions of Scotland’s millionaires.

No such proposals were included in the SNP’s election promises.

The new 1% “annual wealth tax for millionaires” would be levied on “all wealth and assets above the £1 million threshold, including property, land, pensions, and other assets.”

There could also be tension on the timescale to end fossil fuel extraction.

During a television debate, the Scottish Greens co leader Patrick Harvie indicated he would demand the end of North Sea oil and gas production within a decade during any SNP talks. However, the Scottish Government, while committed to achieving a carbon net-zero nation by 2045, favour a more gradual ending of oil production.

Meanwhile, it was reported some senior figures in the SNP are not happy with the prospect of a deal with the Greens fearing it could hamper efforts to rebuild the party’s support in the north east.

The Conservatives took several seats from the SNP in recent elections, including Angus Robertson’s former Moray constituency at the 2017 General Election. It also lost former party leader Alex Salmond’s Gordon seat in 2017, but won it back in 2019.

Robertson returned to frontline politics last month after being elected MSP for Edinburgh Central. He was appointed constitution secretary by the First Minister in her post election reshuffle.

The north east was traditionally an SNP stronghold but support in the fishing and farming area weakened in the immediate aftermath of Brexit.

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According to a report in The Times yesterday one SNP minister called the Greens “dangerous” to friends and questioned their lack of political experience amid the suggestion they could be given jobs in government.

Harvie has been an MSP since 2003 but Lorna Slater was elected only last month.

A full coalition deal has been ruled out but the First Minister said ministerial jobs for Green MSPs are a possibility.

The SNP won 64 seats in the Holyrood election — one short of a majority — and SNP strategists think a deal with the Greens could offer a stable majority as well as help refresh the administration. The SNP have been in power since 2007, governing as a minority government for most of that period, except from 2011 to 2016 when they held a majority in Holyrood.

During the end of the last parliament, Green votes allowed Deputy First Minister John Swinney to survive several votes of no confidence.

A poll last month found the majority of people who voted for the SNP in the Holyrood elections believe it should form a Yes coalition government with the Greens.

The Panelbase research showed 54% of SNP voters backed a coalition while 35% preferred the SNP to govern as a minority government.