Conservatives and Liberal Democrats have reached an agreement that they will continue to jointly run North East Lincolnshire Council.
Joint control of North East Lincolnshire Council is planned
The agreement will last for two years and continues an arrangement that has been in place for the past 12 months.
Part of the deal is that both parties will take it in turn to nominate the leader of the Grimsby-based council.
Following last week's elections, the Lib Dems have 16 seats, the Tories 15, and Labour and independents 11.
Liberal Democrat councillor Andrew De Freitas is the proposed leader of the council until May 2005.
"The successful working relationship established in 2003 will continue for the next two years," said coun De Freitas.
"We have demonstrated that shared political leadership is not only possible but very effective as those concerned have a will to make it work."
Coun De Freitas will be replaced next year by Conservative councillor Kenneth Brookes.