A left-right coalition government of Austria's two biggest parties looked like the only viable option today after Social Democrat Alfred Gusenbauer defeated the ruling conservatives in a parliamentary election.
Mr Gusenbauer's victory over Chancellor Wolfgang Schuessel, whose conservative People's Party lost a quarter of its support, was overshadowed by the lowest turnout in post-war history and a rise in popularity of the far right, which urged a crackdown on mass immigration.
The success of the two far-right parties meant Mr Gusenbauer's preference for a coalition with the Greens looked improbable as they failed to win a combined overall majority.
Since Mr Schuessel ruled out joining forces with the far right, a "grand coalition" of Social Democrats and the People's Party appears to be the only viable alternative, analysts said.
Coalition negotiations are not expected to begin before final official results.
Talks between Social Democrats and the People's Party are expected to focus on education, tax reform and unemployment.
Mr Gusenbauer has said he wants a coalition deal by the end of the year.
