Talks to form a coalition government led by Austria's far-right Freedom Party (FPO) will begin on Friday, the party said on Thursday, as thousands protested in Vienna against the prospect of the country's first FPO-led government.

The leader of the anti-immigrant Freedom Party of Austria, founded by former Nazis in the 1950s, was expected to be asked to enter into talks to form a new government.

Austria’s Chancellor Karl Nehammer said he’ll step down as head of government and chairman of the conservative People’s Party after failing to form a coalition government.

Austria's far-right Freedom Party (FPO), which won September's parliamentary election with 29% of the vote, is due to start coalition talks with the conservative People's Party (OVP) this week aimed at creating the country's first FPO-led government.

Austria's far-right Freedom Party of Austria (FPÖ) began coalition talks with the conservative Austrian People's Party (ÖVP), the latter said on Thursday, after the failure of previous parties to form a government.