New Zealand faces weeks of political uncertainty after Saturday's election failed to deliver a decisive victory for either the center-right or center-left, leaving coalition negotiations as the likely route to forming the next government.

The closely contested vote dealt a setback to the country's two major political parties, Prime Minister Christopher Luxon's center-right National Party and the center-left Labour Party led by Chris Hipkins, as smaller parties on both sides of the political spectrum secured stronger support.

With neither major party able to secure a clear governing majority, the smaller parties are expected to play a decisive role in negotiations over the formation of the next government.

The election results have given these parties greater bargaining power, potentially allowing them to demand significant policy concessions from either National or Labour in exchange for supporting a governing arrangement.

The outcome leaves New Zealand facing a period of political uncertainty as party leaders begin negotiations to secure the numbers needed to govern. (ILKHA)