A RIGHT-WING coalition government has been agreed in Austria between the conservative People's Party and the far-right Freedom Party.

The People's Party's Sebastian Kurz, 31, will become the new chancellor and the Europe's youngest head of government.

It will make the country the only one in Western Europe with a governing far-right party and which is opposed to migration and the European Union.

The conservative People's Party finished first in the country's October 15 election and then embarked on coalition talks with the Freedom Party.

Kurz and Freedom Party leader Heinz-Christian Strache announced at the weekend that they had wrapped up an agreement on a new coalition.

He said that Austrians had voted "for change in our country and we want to ensure this change in the next five years".