National Party leader Bill English expects a phone call with Winston Peters in the next few days to start negotiating the formation of a new government.
English has spoken to media from his hotel in Auckland. He repeatedly said a two-party coalition would be more stable than one made up by Labour, the Green Party and New Zealand First.
"If we had the vote that the Labour Party got then we would be talking about how to deal with being in Opposition.
"Almost one in two New Zealanders supported National. Voters have given us the task of forming a government with New Zealand First."
English said he was keen to get on with the job of forming a government, but would work at the pace New Zealand First was prepared to move at.