Stockholm/UNI: Sweden's Prime Minister Magdalena Andersson said she will stand down after her government was defeated by a thin margin in Sunday's election.
Andersson's centre-left coalition looked set to narrowly lose to a bloc of right-wing parties, 176 seats to 173, with 99 percent of votes counted till Wednesday late.
Moderate Party leader Ulf Kristersson is now expected to form a government, BBC reported.
The bloc includes the Sweden Democrats, a far-right party that has campaigned against rising gang shootings.
The final result is still to be confirmed after a recount, which is standard practice in Sweden.
But despite this, Andersson accepted defeat at a news conference on Wednesday, and said she would officially resign Thursday.
"In parliament, they have a one or two seat advantage," she said. "It's a thin majority, but it is a majority."
The closely fought election campaign was dominated by gangs, immigration and integration issues, as well as soaring electricity prices.
Andersson was the Nordic nation's first female PM when she took office last year - she quit on the first day, before returning soon after.