MADRID (Reuters) - Spain’s government is ready to suspend the application of direct rule in Catalonia if Catalan head Carles Puigdemont calls a snap regional election, La Vanguardia newspaper reported on Thursday, citing sources from the ruling People’s Party.

Puigdemont is set to call an election, according to political allies, a move that could help break a one-month deadlock between the Madrid government and separatists seeking a split from Spain.