Portugal's fractured new parliament reached a compromise Wednesday to share the role of speaker, ending a deadlock between the two main political parties, politicians said.

The Democratic Alliance (AD) coalition, who narrowly won the election earlier this month, and the incumbent Socialist Party (PS) hit an impasse Tuesday after the AD did not receive the 116 votes it needed to see its candidate Jose Pedro Aguiar-Branco elected head of parliament.

But on Wednesday, both parties agreed that a member of the AD would hold the position until September 2026 before passing it on to a PS candidate.

"We have overcome this impasse to enable the parliament and the government to move forward," said Joaquim Miranda Sarmento from the centre-right Social Democratic Party (PSD), the largest group in the AD, which has the most seats in parliament but not a majority.

PSD Prime Minister Luis Montenegro could secure a majority with the support of the far-right Chega party -- something he has ruled out.

Although Chega's leader Andre Ventura on Monday had said the party would vote for Aguiar-Branco, many of their 50 MPs did not.

Ventura blamed members of the AD for publically reneging on an agreement between the two parties that would have secured Chega's support.

Having steadfastly refused to form a coalition with Chega, Montenegro has vowed to form a minority government.