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.

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.

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

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 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.

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.