Opposition leader Katrin Jakobsdottir will become Iceland's next prime minister after her Left-Green Movement today (November 30) agreed to form a coalition government.
Jakobsdottir's party came out second in October's general election and has been in talks with the current biggest partner in the country's coalition, the right-wing Independence Party, and the Progressive Party for two weeks.
"It's a very interesting moment actually in Icelandic political history because these three parties are very different," Ms Jakobsdóttir told the AFP news agency.
The mother of three is Iceland's second female prime minister after Johanna Siguroardottir (2009-2012); also the world's first openly lesbian head of government.
The snap election was called by former PM Bjarni Benediktsson in September having served less than a year in government after a paedophile scandal involving his father caused a government ally to drop out of his ruling coalition.
It emerged that Benediktsson's father wrote a letter recommending that a convicted paedophile have his "honour restored".
In Iceland, criminals can have some civil rights restored upon acquiring three letters of recommendation from people with a good character.
The island nation of 340,000 people was crippled by the 2008 financial crisis but has restored its economy through tourism.