Discussions have taken place between the Welsh Labour Government and Plaid Cymru about an “ambitious co-operation agreement”, it has been announced.

A statement from the two parties suggested some form of partnership could emerge in response to the recovery from the Covid-19 pandemic, Brexit and "threats to devolution".

The joint statement said "constructive initial discussions" have taken place between them that could see them exploring ways of building "a more equal, just and democratic nation for all".

The full statement said: "As Wales prepares for a stronger future beyond the coronavirus pandemic; responds to the climate emergency, the ongoing consequences of leaving the European Union, and threats to devolution; it is more important than ever that political parties work together wherever they have common interests on behalf of people in Wales.

"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.

"These discussions are continuing to explore an ambitious co-operation agreement to be based around a number of defined policy priorities and the governance arrangements on which the Welsh Labour Government and Plaid Cymru can work together to deliver for Wales."

However, the Welsh Conservatives have hit out at the possible co-working agreement.

Andrew RT Davies MS, Welsh Conservatives leader 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.

“The NHS in Wales is on its knees. Children have missed months of school. The economy needs support. Just watch as promises of Covid recovery turn into a nightmarish prospect of state-building and hoarding powers.

“They are both totally divorced from people's priorities.”