Iraqis turned out in large numbers for an election in March, hoping to strengthen their fledgling democracy after years of authoritarian rule, war and sectarian violence.
A Sunni-backed bloc led by former prime minister Ayad Allawi narrowly defeated Mr al Maliki at the polls.
But no single bloc won an outright majority, leaving the blocs scrambling to cobble together enough political support to forge a coalition government.
A government spokesman has now told reporters that a deal has been achieved, adding that Mr al Maliki will remain as the nation's leader.
The reported deal came as Turkey's foreign minister visited Iraq to push the country's political leaders to overcome the deadlock.
Ahmet Davutoglu said he was in Iraq to consult with major political players on how to break the impasse.
Mr Davutoglu met with Kurdish leaders in the northern city of Irbil and was later headed to capital city Baghdad.
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