SKOPJE, Macedonia, Macedonia's conservative prime minister-designate and the leader of the ethnic Albanian opposition have agreed to form a government coalition.

Silvana Boneva, a senior official of the ruling conservative party said it agreed with the Democratic Union for Integration on forming a new government.

Central bodies of both parties have already endorsed the coalition agreement.

Macedonia's electoral commission have now announced the final results from the June 1 elections.

The party of prime minister-designate Nikola Gruevski won 63 of parliament's 120 seats, and the Social Democrats won 27 seats.

The ethnic Albanian Democratic Union for Integration, led by new coalition partner Ali Ahmeti, won 18 parliamentary seats compared with 11 for the Democratic Party of Albanians.

One seat went to the small Party for European Initiative.

Macedonia has experienced a spate of violent attacks among ethnic Albanians.

The ethnic minority's two main parties have been locked in a bitter rivalry that led to violent disruptions to the country's parliamentary election last month and forced many areas to hold reruns twice, on June 15 and 29.

The Democratic Union party emerged from the former rebel National Liberation Army, which staged a six-month insurgency in 2001 seeking more rights for Macedonia's ethnic Albanian minority.

Democratic Union's arch rival, the Democratic Party of Albanians, was a partner in Gruevski's previous centre-right cabinet from 2006 to 2008.

Senior officials from Gruevski's party and Ahmeti's Democratic Union did not reveal details on Saturday about the basic principles on the agreed partnership.

Gruevski said he was forming a new government that would revive the country's stagnant economy and hold talks with the leaders of both ethnic Albanian parties, as part of his commitment to include the ethnic Albanian minority in political decision-making.

One of his top priorities will be the dispute with Greece over Macedonia's name, which has stymied the country's bid for NATO membership and triggered elections on June 1.

Greece argues Macedonia's name implies a territorial claim against its own region of Macedonia, a claim the country of Macedonia rejects.

Both ethnic Albanian parties had delivered similar demands in order to join the new government: pensions for ethnic Albanian rebels, recognition of Kosovo's independence and promulgation of Albanian as Macedonia's second official language.

Ethnic Albanians make up a quarter of Macedonia's population of 2.1 million.

The new government is expected to be announced next week.