Representatives of the conservative Austrian People's Party (ÖVP) and the Social Democrats (SPÖ) met in the nation's chancellery for talks on Saturday after the failure of their discussions with a further party for a three-way coalition.

Austria's conservative Chancellor Karl Nehammer said Saturday he would step down in the "coming days" after breaking off coalition talks with the Social Democrats over disagreements on key issues.

The surprise move might lead to snap polls being called – or the conservatives might negotiate with the far right that won national elections in September.