The chancellor said his party – the conservative People’s Party (ÖVP) – and the Social Democrats had failed to agree on key issues.

The liberal Neos, another party involved in the talks, also pulled out on Friday.

In September, the far-right Freedom Party (FPÖ) won an unprecedented victory in Austria’s general election, but the other parties ruled out forming a coalition with the FPÖ’s leader Herbert Kickl.

The collapse of the talks could lead to the conservatives negotiating with the far-right, or to a new election taking place, analysts have said.T

he Russia-friendly FPÖ has been in a ruling coalition before. It would likely welcome a new election as opinion polls suggest its popularity has grown further since September.

The FPÖ has said in a statement on X that three months have been lost by the coalition talks and adds that “instead of stability, we have chaos”.

The party has called for Social Democrat leader Andreas Babler to also resign and said President Alexander Van der Bellen bears “a significant share of responsibility for the chaos that has arisen and the lost time”.

The FPÖ won almost 29% of the vote in September’s election, the People’s Party came second with 26.3% and the Social Democrats third, with 21%.

There was a high turnout of 77.3% as Austrian voters took part in an election dominated by the twin issues of migration and asylum, as well as a flagging economy and the war in Ukraine.

The FPÖ’s Kickl promised to build “Fortress Austria”, to restore Austrians’ security and prosperity.

The party wants firm rules on legal immigration and it has promoted the idea of remigration, which involves sending asylum seekers to their original countries.

The FPÖ was founded by former Nazis in the 1950s.Two days before last year’s general election vote some of its candidates were caught on video at a funeral where an SS song was sung.

The party later denied the song, dating back to 1814, had any link to “National Socialist sentiments”.