Swedish PM Fredrik Reinfeldt (far right) is hosting the wide-ranging talks at his summer residence in Harpsund
The leaders of Sweden, Germany, Britain and the Netherlands are meeting at a mini-EU summit near Stockholm to try to reach a consensus on European reform.
The controversial question of who is to head the European Commission is likely to be discussed, but not officially.
UK PM David Cameron is expected to try to get leaders on-side to block Jean-Claude Juncker taking the job.
It sets him against German Chancellor Angela Merkel, who publicly supports the ex-Luxembourg leader's appointment.
Few details from the summit have emerged. However, job creation, institutional changes in the EU and structural reforms to boost EU competitiveness were said to be high on the agenda.
The UK, Sweden and the Netherlands are leading a campaign to block Mr Juncker's candidacy, which has the support of the largest centre-right political grouping in the European Parliament, the European People's Party (EPP).
Ahead of the two-day talks that began on Monday, Mr Cameron said he had the support of "all major UK parties" in opposing the appointment.
He also spoke to the prime ministers of Italy and Hungary, Matteo Renzi and Viktor Orban, by phone to discuss the matter, Reuters reports.
The BBC's Ben Wright, in Harpsund, said the scene was set for a lengthy power struggle between EU leaders and the European Parliament over the appointment with the UK worried about the prospect of a "stitch-up".
A news conference on the outcome of the talks is scheduled for 08:00 GMT on Tuesday.
Role of commission
Mr Cameron is strongly opposed to Mr Juncker's belief in a closer political union between EU member states and has described Brussels as "too big" and "too bossy".
His hand was strengthened on Monday when the UK opposition Labour party said its MEPs in the European Parliament, which must approve the choice by EU leaders, would vote against Mr Juncker.
On arrival in Sweden, Mr Cameron said it should be EU leaders and not the European Parliament who decide who will head the commission.
Swedish Prime Minister Fredrik Reinfeldt also dismissed the idea of a stronger role for the European Parliament.
"We in principle dislike the idea of presenting front-runners from the different parties because we think that twists the balance between the institutions and the way that the Lisbon treaty is set up," he said.
More discussions were needed on the role of the EU commission before looking at names, he added.
Juncker: For and against
Angela Merkel: German chancellor, after some hesitation, backed European People's Party candidate. Some in Germany believe she may be willing to discuss alternatives
David Cameron: Opposed to former Luxembourg PM's candidacy - said to see him as a "face from the 1980s" who cannot solve the problems of next five years
Fredrik Reinfeldt: Seen as opposed to Mr Juncker and reports in European media suggest Swedish prime minister himself could be compromise candidate
Mark Rutte: Opposed to Mr Juncker, and Dutch PM due to meet Irish prime minister after Swedish summit to discuss alternative candidates
Dutch PM Mark Rutte told reporters that it was premature to put forward names for who should replace Jose Manuel Barroso as head of the commission.
"My belief is that we should first focus on content, discuss what the new commission should do... then discuss who fits that profile," he said.
Mrs Merkel said the four leaders would not make a final decision on who they would back, adding that her position was well known.
EU leaders have traditionally named the commission head on their own, but new rules mean they now have to "take into account" the results of the European Parliament elections.
The EPP grouping, of which Mr Juncker is a member, won the largest number of seats in May's polls, and he has argued that that gives him a mandate.
The decision will be made by the European Council - the official body comprising the 28 leaders - by qualified majority vote. That means no single country can veto the choice.
The decision is expected at an EU summit on 26-27 June although an agreement by then is by no means guaranteed.
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