The three biggest centrist parties in Austria's parliament have agreed to form a new coalition government, sidelining the far-right Freedom Party (FPO) even though it came first in September's parliamentary election.

Three parties say they have reached a deal to form a new centrist Austrian government, five months after an election was won by a far-right party that later failed in an attempt to form an administration.

The three parties announced the formation of a new government coalition on the morning of February 27, according to the Austrian portal APA.

Austria’s coalition agreement is set between ÖVP, SPÖ and NEOS leaders, but political tensions and party votes will decide if the government takes office next week.

Three moderate Austrian parties struck a deal to form a new government, moving ahead with a coalition which will need to make deep budget cuts in an economy trying to exit a second year of recession.

Centrist political parties have struck a deal to form a new coalition government in Austria, according to German broadcaster ARD. The new coalition consists of the centre-right Austrian People's Party (ÖVP), the centre-left Social Democratic Party (SPÖ), and the liberal NEOS, according to a newsflash from the ARD's Tagesschau this morning.

Austria's three top centrist parties in parliament have reached a deal to form a coalition government without the far-right Freedom Party (FPO) and plan to present it later on Thursday, five months after the FPO won the last parliamentary election.

Talks to form a new government have stretched on for five months, longer than any coalition negotiation in the country's history. View on euronews

Austria's conservative People's Party (OeVP) on Thursday announced a government coalition with two centrist parties that excludes the far right, which came first in elections in September. Negotiations between the FPOe and OeVP on Austria's first far right-led government broke down this month.