• Swedish PM plays down coalition with the Greens
• Sweden's Liberal Party disputes vote result

Swedish Prime Minister Fredrik Reinfeldt will lead a minority government, said opposition leader Mona Sahlin, who had been pushing for a majority government, after speaking with him on the phone Tuesday.

"He says he is going to lead a minority government. I've yet to hear how he thinks he's going to do that, but we'll have to wait and see what his analysis is," Sahlin, who leads the Social Democrats, said in comments broadcast on Swedish public radio.

Mona Sahlin also approved the new agreement between the Greens and the center-right Alliance to co-operate on immigration and refugee questions. That would block the anti-immigrant Sweden Democrats – who won parliamentary seats for the first time – to make demands for a tougher anti-immigrant and anti- refugee policy.

"It's appropriate for the democratic parties to hold discussions on these issues," Sahlin told the TT news agency.

The prime minister's four-party coalition won most votes in the September 19 general elections but fell two seats short of a majority of the 349 seats in parliament.

Reinfeldt has vowed not to cooperate with the far-right, anti-immigrant Sweden Democrats, who were voted into parliament for the first time, and has instead said he will seek support from the Greens to pass legislation.

The Greens said they would not support Reinfeldt's government in parliament, but promised to be "constructive" and cooperate with the government on several issues to help limit the influence of the Sweden Democrats.

Sahlin has also said she would collaborate with the government on immigration and asylum policy issues.