Julia Gillard is one step closer to keeping Labor in power after securing the support of independent MP Andrew Wilkie to form a minority government.

Mr Wilkie says he decided to back Labor after Ms Gillard agreed to several requests, including $340 million for the Royal Hobart Hospital and restrictions on poker machines.

His decision means Labor has 74 definite seats, two short of the majority needed to secure power.

The Coalition has 73 seats if West Australian Nationals MP Tony Crook is included.

Mr Wilkie also revealed Opposition Leader Tony Abbott offered him almost three times as much for the Hobart hospital, but he turned it down.

"The ALP best meets my criteria that the government must be stable, competent and ethical," he said.

As well as the $340 million for Hobart hospital, Ms Gillard has promised to open up a funding round of $1.8 billion for other hospitals.

Mr Wilkie says regional and rural hospitals should be considered as priorities in the applications for funding.

A Labor government would also force the states to implement "smart cards" on poker machines to restrict gambling if they do not agree to do it voluntarily.

"This is a fabulous commitment of the Prime Minister and will go a long way to reducing problem gambling in Australia," he said.

However Mr Wilkie also warned his decision to back Labor only extends to issues of supply and no-confidence motions.

"I've made it quite clear to the Prime Minister that she shouldn't necessarily count on my support when it comes to any particular initiative or pieces of legislation," he said.

Ms Gillard has welcomed Mr Wilkie's decision to support her attempt to form a government.

"I thank Mr Wilkie for bearing in mind at all stages the national interest," she said.

Talks continue

Mr Wilkie's decision comes as the other three independent MPs are locked in talks while they consider which party to support in a minority government.

Rob Oakeshott, Tony Windsor and Bob Katter are today in back-to-back meetings in Canberra with Labor and Coalition figures.

The trio have also had lunch with mining magnate Andrew "Twiggy" Forrest, who is strenuously opposed to Labor's mining tax.

Mr Oakeshott says he is likely to use the weekend to come to a final position.

"I've been quite open about more than likely pulling something together over the weekend," he said.

"I think we're all looking to hopefully at the latest be home by Monday or Tuesday, but there are some realities in regards to funerals of returning soldiers from Afghanistan, so tomorrow is going to be a difficult day for negotiations to take place."

Mr Oakeshott also wants a document on parliamentary reform to be finalised by tomorrow before he makes a final decision.

Negotiations continue today after the independents released Treasury analysis that showed a $7 billion to $11 billion shortfall in the Coalition's election policy costings.

Mr Oakeshott says Treasury's advice will influence his decision.

"I'm a believer in Ken Henry," he said.

Mr Windsor says he will also factor the Treasury advice into his decision.

"Treasury have their way of doing it. They've come up with this number of between $7 billion and $11 billion."

"We can only take their word for it."

But Opposition treasury spokesman Joe Hockey says he stands by the costings.

"The vast majority of our policies were ticked off," he said.

"We submitted more than 300 policies totalling in excess of $90 billion. The number of policies is nearly three times what Labor submitted."