Irish Prime Minister Bertie Ahern appears likely to clinch a third term in office as he begins the search for new coalition partners.

Irish Prime Minister Bertie Ahern waves to the public as he leaves a Fianna Fail office in north Dublin on Saturday.
(Peter Morrison/Associated Press)

With 90 per cent of the parliamentary seats filled in the second day of counting following Thursday's election, the Irish media predict Ahern's Fianna Fail party will win 78 seats.  

The tally is five short of a majority, but enough to thwart a potential opposition alliance.

Ireland faces two weeks of private negotiations to work out whether Ahern can share power with politicians who just a few days ago were hoping to see him lose office.

Fianna Fail's main rival, Fine Gael, was on course for 51 seats, too few to put together a viable majority with other parties.

The most likely coalition partners for Ahern's party are either the Labour Party or the Greens. Both are strident left-wing critics of Ahern's pro-business government that, for 10 years, has promoted Ireland as a low-tax magnet for American investment and European immigration.

Ireland has been the unquestioned economic dynamo of Europe since the mid-1990s. A 12.5 per cent rate of business tax — a third of the European norm — has wooed hundreds of multinational corporations, particularly in computer technology and pharmaceuticals.

With files from the Associated Press