Sebastian Kurz, right, shakes hands with Heinz-Christian Strache, chairman of the right-wing Freedom Party, after they announced the deal last night

Austria’s main conservative party, led by Sebastian Kurz, last night struck a deal to form a coalition government with the far-right Freedom Party.

Reached after less than two months of talks, the pact means Austria will become the only western European country with a far-right party in office. It also means the nation will have the world’s youngest leader in Mr Kurz, 31.

His party won the election in October with a hard line stance on immigration that overlapped with the position of the Freedom Party (FPO). The FPO came third with 26 per cent of the vote.

In a joint statement, Mr Kurz and FPO leader Heinz-Christian Strache said they had reached a “turquoise-blue agreement”, referring to the parties’ colours.

Mr Kurz added: “We