Ireland's two major centre-right parties finalised a coalition deal with independent lawmakers on Wednesday that will return Micheal Martin as prime minister and continue the previous government's high spending economic policy.

Ireland has moved a step closer to forming a new government. Irish media says a deal was reached Tuesday between Fianna Fail, Fine Gael and the Regional Independent Group to form a government a month and a half after the election gave no party a majority of seats needed to control parliament.

Ireland's next programme for Government will now be subject to approval by the party memberships over the coming days. Who will be Ireland's next Taoiseach?

Ireland's two dominant centre-right political parties are close to finalising a coalition deal with independent lawmakers to return to power for another five-year term, two lawmakers said on Tuesday.