The ruling Parti Quebecois, which supports independence from Canada, won a majority of seats, but the opposition Liberal Party gained a higher percentage of the vote.

Deputy Prime Minister Bernard Landry: Referendum held when the conditions are right

Quebec's victorious deputy prime minister, Bernard Landry, said his party would only hold a referendum on secession when it was sure it could win.

Television projections gave the Parti Quebecois (PQ) 75 seats in the provincial legislature against 48 for the Liberals.

But the PQ actually had a smaller share of the vote with 42.9% against 43.6% for the Liberals. A third party, Democratic Action, got 11.8%.

The reason the Liberal Party won so few seats in comparison with its share of the vote is because its support is heavily concentrated in a few areas of the province.

Lucien Bouchard - victorious just as in 1994

The victorious PQ leader, Lucien Bouchard, said the result did indicate support for another referendum on Quebec independence.

"We solicited a mandate to assemble the winning conditions for a sovereignty referendum for Quebec ... a sovereignty in which we extend a hand to all of our citizens and all of our neighbours," Mr Bouchard told cheering supporters.

But the result was nowhere near the landslide that the polls had predicted - the PQ popular vote actually fell in comparison to the last election in 1994.

Mr Bouchard has been vague about when such a referendum might be held.

The leader of the Liberals, Jean Charest, said he accepted the election result with humility, but would stay on as party leader to defend Quebec's interests within Canada.

Jean Charest: The federalist option came second again

"To those who only a few days ago said that the Parti Quebecois would win in a landslide with 10 points, the result tonight speaks to a different reality, one that reflects the fact that the people of Quebec, like the people of all of Canada, want this country of ours to work and to be a success," Mr Charest said.

In Ottawa, Canada's Liberal Prime Minister Jean Chretien said the election indicated that Quebec voters were most concerned about the economy, jobs, health, education and the future of its youth.

"So long as Mr Bouchard and his colleagues respect these priorities and improve our country, that is Quebecois and of Canadians, they will have our full co-operation," Mr Chretien said.

But referring to the PQ's secessionist aspirations he added: "When the time comes to defend Canada, we will be there every step of the way."