Tunisian political parties have once again failed to reach an agreement on appointing a new prime minister to replace outgoing Prime Minister Ali Larayedh.

Tunisia's influential General Labor Union -- also known by its French acronym as UGTT -- which has been mediating between the ruling Ennahda party and the National Salvation Front opposition coalition, made the announcement on Monday, AFP reported.

The UGTT said that the latest meeting began at around 1300 GMT, two hours after a noon deadline passed to announce the name of the new prime minister.

The two sides missed an earlier deadline on Saturday to bridge their differences and resolve months of political deadlock in the North African country.

The ruling party and the opposition opened talks on October 25 to form a caretaker government comprised of independents that run the country until the next elections.

Under the plan, a new prime minister was to have been named on Saturday, a week after the talks began, but when that failed a new deadline was set for Monday noon.

The dispute centers on frontrunners Mohamed Ennaceur, 79, who is backed by the opposition, and Ahmed Mestiri, 88, who enjoys the support of Ennahda and its coalition partners.

Both veterans are well respected and served under the late Habib Bourguiba, who led the fight for Tunisia's independence from France and served as its first president from 1957 through1987.

Mestiri held key portfolios of finance, justice, defense and interior in successive governments under Bourguiba while Ennaceur specializes in social affairs.

Tunisia has been experiencing tension since the 2011 uprising that toppled former dictator Zine El Abidine Ben Ali.

The situation worsened after militants killed key opposition figure Mohamed Brahmi, who led the left-wing Popular Movement Party, in July following the assassination of secular opposition leader, Chokri Belaid, in February.

Poor economic conditions have also been fueling the unrest in Tunisia, where inflation is running at more than six percent and the budget deficit stands at around 7.4 percent of gross domestic product.

After months of political crisis, Ennahda opened talks with the opposition on October 25 to form the new government, agree on a constitution and prepare for elections.