Herbert Kickl, leader of Austria's right-wing Freedom Party, met with President Alexander Van der Bellen on Sunday, further fueling rumors that he will be asked to form a government.

VIENNA - Austria's Freedom Party leader Herbert Kickl said on Tuesday that he planned to invite the conservative People's Party for coalition talks. Kickl's announcement came one day after he was given a mandate by Austrian President Alexander Van der Bellen to form a new government.

The Neos party's abrupt withdrawal from Austrian coalition talks has caused political uncertainty, strengthening the far-right Freedom Party's position. Opinion polls show increased support for the FPO,

Talks on forming a three-party coalition government in Austria collapsed after the smallest party NEOS withdrew from negotiations. However, the remaining two parties have confirmed their intention to continue discussions.

Austrian President Alexander Van der Bellen has instructed far-right Freedom Party leader Herbert Kickl to begin coalition talks to form a government with the Austrian People's Party following a meeting on 6 January.

Negotiations for a new three-party government in Austria have collapsed after the Neos party withdrew, leaving Chancellor Karl Nehammer seeking alternatives.

Austria headed on Sunday towards coalition talks led by the far-right Freedom Party (FPO) after efforts to form a centrist government without the FPO fell apart and prompted Chancellor Karl Nehammer to resign.

Austria's conservatives said Sunday they were ready to start negotiations with the far-right Freedom party (FPOe) to form a new government, a policy U-turn after coalition talks with two centrist parties failed.

Vienna’s historied Hofburg palace has seen empires come and go and on Monday it will witness another first when Austria’s far-right leader arrives for talks on. The 11am meeting with Freedom Party (FPÖ) leader Herbert Kickl is one President Alexander Van der Bellen had done everything in his power to avoid.

Karl Nehammer said about the talks between his conservative People's Party and the Social Democrats: 'We have tried everything up to this point.'

The next government in Austria faces the challenge of having to save between 18 and 24 billion euros, according to the EU Commission.