After 17 months of heading a one-party, minority government, Denmark's Prime Minister Lars Lokke Rasmussen announced on Sunday he had agreed to form a new government with the Liberal Alliance and the Conservative party.

Rasmussen first announced the deal on Twitter, saying a deal had been reached to form a "three-leaf clover" government along with his Liberal Party known as Venstre.

"We now have a platform we agree on, so Venstre, Liberal Alliance and the Conservatives can build, tomorrow, a tripartite government," Rasmussen told reporters.

The leaders of the three parties said they agreed to increase defense spending and ease taxes on home-owners and the wealthy.

Since June 2015, the Danish government has consisted only of Rasmussen's center-right Liberal Party which holds only 34 out of 179 parliamentary seats.

The new government will still have to rely on the support of the anti-immigration, populist Danish People's Party for a majority in parliament.

They are also the largest of the three parties supporting the new government but were not invited by Rasmussen to join the new government.

Negotiations on a 10-year financial reform plan outlined by Rasmussen in August will now be postponed until next spring when a new reform plan will be presented, the prime minister said on Sunday.

Since 2015, Rassmusen's Liberal Party has introduced several measures to limit migrants and refugees coming to the country. Their measures have been backed by the Denmark's largest opposition party, the Social Democrats.

The new government is due to be presented on Monday at 11:00 a.m. (10:00 UTC).

rs/jlw (AFP, dpa, Reuters)