Iceland's president has asked Social Democratic party leader Kristrun Frostadottir to form a new coalition government after finishing first in Saturday's general election, public broadcaster RUV reported on Tuesday.

Iceland began the work to form a new ruling coalition after opposition Social Democrats won Saturday’s elections on the Atlantic island.

Voters in Iceland appear to have rejected incumbent parties in a parliamentary election. Partial results show a center-left party in first place in the North Atlantic island nation.

Iceland's centre-left Social Democratic Alliance became the biggest party in a snap election that unseated the ruling coalition of the past seven years, the final count showed on Sunday. The Social Democrats gained 15 seats in the 63-seat parliament with 20.

Iceland's opposition Social Democrats were ahead in vote counting on Sunday after a snap election prompted by the collapse of the fraught coalition government.With the ballots of more than half of eligible voters counted,

Iceland’s opposition Social Democrats won snap parliamentary elections as the ruling bloc faced voter discontent with high costs of living and housing shortages.