Austrian Chancellor Karl Nehammer said he would resign as chancellor and party leader in the coming days after talks to form a coalition government collapsed.
The prime minister said his party – the conservative People’s Party (ÖVP) – and the Social Democrats failed to agree on key issues.
Another party involved in the negotiations, the liberal New Socialist Party, also withdrew on Friday.
In September, the far-right Freedom Party (FPÖ) won Unprecedented victory in Austrian electionbut other parties have ruled out forming a coalition with Liberal leader Herbert Kickel.
Analysts said a breakdown in talks could lead to talks between conservatives and the far right, or to new elections.
The pro-Russian Freedom Party has previously joined the governing coalition. it may welcome new elections opinion polls show Its popularity has grown further since September.
FPÖ In a statement from Three months have been wasted on coalition talks, adding that “instead of stability we have chaos”.
The party called on Social Democratic leader Andreas Babler to also resign and said President Alexander van der Bellen “bears heavy responsibility for the chaos that occurred and the time wasted”.
The Liberal Party won nearly 29% of the vote in September’s election, with the People’s Party in second place with 26.3% and the Social Democrats in third with 21%.
Austrian voters participated in an election dominated by the twin issues of immigration and asylum, a weak economy and the war in Ukraine, with a turnout of 77.3%.
The Liberal Party’s Kickel promised to build an “Austrian fortress” to restore security and prosperity to Austrians.
The party wants strict rules on legal immigration and promotes the idea of re-immigration, which would include sending asylum seekers back to their countries of origin.
FPÖ was founded in the 1950s by former Nazis.
Two days before voting in last year’s general election, some candidates were filmed singing SS songs at a funeral.
The party later denied that the song, which dates back to 1814, had any connection with “National Socialist sentiment”.