Ireland's two major centre-right parties finalised a coalition deal with independent lawmakers on Wednesday that will return Micheal Martin as prime minister and continue the previous government's high spending economic policy.

Ireland’s centrist political parties struck a deal to form a coalition government, backed by a handful of unaligned lawmakers, after weeks of negotiations, according to the Irish Times.

Ireland has moved a step closer to forming a new government. Irish media says a deal was reached Tuesday between Fianna Fail, Fine Gael and the Regional Independent Group to form a government a month and a half after the election gave no party a majority of seats needed to control parliament.

By Padraic Halpin and Conor Humphries DUBLIN (Reuters) -Talks between Ireland's two historically dominant centre-right parties and independent lawmakers have reached an agreement that will give a new coalition government a "comfortable majority,

Ireland’s two dominant political parties will return to power for another five-year term after agreeing a new coalition deal following weeks of negotiations.

An agreement has been reached which will pave the way for a new government to be formed in the Republic of Ireland. This follows the Irish general election in November, in which Fianna Fáil emerged as the largest party.