National party leader Bill English faces tough negotiations with wily political veteran Winston Peters as he seeks a coalition government with the populist New Zealand First party.
National easily outpolled Labour in the 23 September general election, but failed to secure the 61 seats needed to form a majority government.
According to preliminary results, National have so far won 58 seats, Labour has 45 seats, NZF has nine seats and the NZ Greens have won seven seats.