The leader of New Zealand's opposition Labour Party says she has reached out to the party holding the balance of power after an indecisive weekend election, with the two parties sharing "a lot of common ground".
The ruling National Party won the most seats in Saturday's general election, but failed to secure enough to form a government, leaving the nationalist New Zealand First Party in the position of kingmaker.
NZ First leader Winston Peters, a veteran politician who has served in both National and Labour governments in previous coalitions, is yet to speak directly with either Labour leader Jacinda Ardern or Prime Minister Bill English.
English has said it could take weeks to form a coalition government, with uncertainty weighing on the New Zealand dollar.
The National Party secured 58 seats ahead of the 52 seats for the Green Party and Labour, which experienced a surge in popularity under new leader Ardern, in the weekend poll. That left both still needing NZ First's nine seats to reach the 61 seats required to form a government under the country's proportional representation political system.
Ardern said her team had made contact with Peters' team, saying they were ready to talk when he is, and maintained that she had "absolutely every chance" of becoming New Zealand's youngest prime minister in modern history.
A final tally of the election results is due on October 7, when "special votes", which make up 15 per cent of the total and which include overseas votes, are released. English remains prime minister in the interim.
