King Felipe VI is giving Spanish political parties more time to negotiate a way out of the near three-month political stalemate on who should form a new government.

The palace announced the decision Monday after the monarch met with a Parliament representative following Socialist party leader Pedro Sanchez*s failure last week to muster sufficient support in the house to lead a new government.

Political parties now have two months to try to form a government or another election will be held June 26.

The palace said the king had decided not to call in party leaders for fresh consultations on who should try to form a government for the moment.

The Dec. 20 election produced a totally fragmented parliament with no party winning a majority of seats.