Austria's conservative People's Party (OVP) and the anti-immigration Freedom Party (FPO) reached a coalition deal on Friday, conservative leader Sebastian Kurz said - paving the way for Austria to become the only western European country with a far-right party in government.

"We can inform you that there is a turquoise-blue agreement," Kurz told journalists, referring to the colours of the two parties, as he stood next to FPO leader Heinz-Christian Strache.

The two declined to provide any further information on their coalition agreement, reached after less than two months of talks.

Strache and Kurz said the details of their agreement would be presented to the public on Saturday, after a meeting with President Alexander Van der Bellen and discussions with their parties’ leadership structures.

Sebastian Kurz, aged 31, is set to become the next Austrian chancellor and Europe's youngest head of government.

“We want to reduce the burden on taxpayers ... and above all we want to ensure greater security in our country, including through the fight against illegal immigration,” Kurz said.