Austria's centre-left Social Democrats and the conservative People's Party have agreed to form a coalition government, two months after elections.
Social Democratic leader Werner Faymann, whose party won most votes, is expected to become the next chancellor.
The two parties had been partners in the previous government, but fell out after 18 months in power.
The deal means neither of Austria's two far-right parties, who made big gains in the poll, will be in government.
'Good work'
The Social Democrats and the People's Party announced the deal after their talks ended on Sunday.
"More than ever before, Austria needs a government that can react to the problems of our times with the right answers"
Josef Proell, the head of the People's Party, said: "I'm very pleased that after five weeks of hard work we've laid the groundwork for five years of good work for Austria."
"More than ever before, Austria needs a government that can react to the problems of our times with the right answers," Mr Proell added, referring to the global financial crisis gripping Austria.
The two leaders said the new cabinet would be announced in the coming days.
The Social Democrats won the snap parliamentary elections with 30% of the vote. But they, and the People's Party, with 26%, suffered their worst results since 1945.
Discontent
The coalition deal means that neither of the two far-right parties - the Freedom Party and the Alliance for the Future of Austria - will be included in the new government.
With nearly 29% of the vote, the two parties saw their support double since the 2006 polls.
This was the result of protest votes on a variety of issues, the BBC's Bethany Bell in Vienna said.
In October, the leader of the Alliance for Austria's Future, Joerg Haider, died in a car crash.
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