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.

The leader of the anti-immigrant Freedom Party of Austria, founded by former Nazis in the 1950s, was expected to be asked to enter into talks to form a new government.

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 in the Alpine EU member country — or the conservatives might negotiate with the far right that won national elections in September.