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 conservative Austrian People's Party, the center-left Social Democrats and the liberal Neos agreed on a program for a coalition

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 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.

The sidelined far-right Freedom Party won the parliamentary election five months ago with 29 per cent. Read more at straitstimes.com.

The Freedom Party has sought to join the rising tide of hard-right movements across Europe by tapping into voter anger over immigration, inflation and the European Union’s influence.

Thursday's announcement follows the longest period of coalition negotiations in Austria's recent history, after two previous attempts to form a government failed. The three-party government, which would be the first since the late 1940s,