Kosovo's two biggest parties have reached a deal to create a new government, almost four months after the Balkan country held snap elections following the prime minister's resignation.

Albin Kurti, the 44-year-old leader of the left-wing Vetevendosje (Self Determination) party said on Sunday he would become the prime minister under the deal and work with the centre-right Democratic League of Kosovo (LDK) and other groups.

More:

"We have already signed the agreement, we have agreed on everything and are sharing responsibilities within the new government," Kurti told a joint news conference with LDK leader, Isa Mustafa.

The country's parliament - where the coalition parties together have 77 of 120 seats - will vote on the agreement on Monday, he said.

The new coalition will include six groups representing the Serbs, Turks, Bosniaks and other ethnic minorities.

Kurti and Mustafa have been negotiating a coalition since the election on October 6, the country's fourth since declaring independence in 2008.

The main points of contention concerned the allocation of posts within the administration.

The October election was called after Ramush Haradinaj resigned as prime minister after being summoned for questioning by a European Union-funded war crimes court that sits in The Hague.

Kosovo declared independence from Serbia in 2008, nearly a decade after NATO air attacks drove out Serbian forces accused of expelling and killing ethnic Albanian civilians.