The Queensland election result could be further delayed if a by-election is ordered in the key undecided seat of Ferny Grove in Brisbane.

The Electoral Commission said it had confirmed Palmer United Party (PUP) candidate Mark Taverner was an undischarged bankrupt.

That rules him ineligible from running for Parliament and the Commission is seeking crown law advice on what to do next.

A spokesperson for the Electoral Commission said Mr Taverner had signed a declaration that he was eligible to stand for election.

Counting continues in the seat, with Labor's candidate Mark Furner ahead of the LNP's Dale Shuttleworth by about 400 votes.

Hung parliament possible

The LNP had been tipped to win the state election but has won only 39 seats compared to Labor's 42, with caretaker premier Campbell Newman losing his seat of Ashgrove to Labor's Kate Jones.

The ABC's election analyst Antony Green said a hung parliament was a real possibility, with predictions Labor would win 44 seats this election and the LNP 42.

At 44 seats, Labor would be just shy of the 45 needed to govern in its own right.

Potential deputy premier Jackie Trad said she was still hopeful of reaching 45 seats and Labor was ready to govern, "unlike the LNP who are a leaderless rabble right now".

"The Labor Party is extremely hopeful that we'll be able to get to a majority," she said.

Negotiations with crossbench MPs continue

Queensland's political instability could drag on into next week, with key seats still too close to call and negotiations with crossbench MPs set to intensify.

Sorry, this video has expired Qld election result delayed as counting continues ( Chris O'Brien )

An outcome could be delayed further if a by-election is held in Ferny Grove.

Sunshine Coast independent MP Peter Wellington is arriving in Brisbane on Wednesday for talks with the major parties and the two Katter's Australian Party MPs.

The two Katter Party MPs said they had informal talks with the LNP, but would not say who they had spoken to, and were also yet to speak to Labor.

Meanwhile the LNP was expected to win Lockyer, west of Brisbane, where Ian Rickuss had pulled ahead of One Nation's Pauline Hanson.

About 6:15pm (AEST), Ms Hanson was about 200 votes behind Mr Rickuss.

Green said on Monday he expected further counting would weaken Ms Hanson's position.

Mr Rickuss has held the seat since 2004.

One Nation previously held Lockyer from 1998 to 2004, first by local vet Peter Prenzler and then Bill Flynn from 2001.