September's election saw the ruling left-right coalition increase their absolute majority in Iceland's parliament.
Iceland's ruling coalition has agreed to govern for another term following September's general election.
The three-party coalition of left and right parties announced on Sunday that it had reached an agreement for another four-year mandate.
Katrin Jakobsdottir of the Left-Green Movement will stay on as Iceland's Prime Minister.
Jakobsdottir -- the country's second-ever female PM -- has led the country since 2017.
Despite her popularity, the coalition has faced criticism for recent environmental policies and has pledged to make focus on climate change a "priority".
In September's election, the Left-Green Movement -- alongside the conservative Independence Party and centre-right Progressive Party -- expanded its absolute majority to 38 seats.
But talks between the three unlikely coalition partners lasted much longer than expected.