Ireland's two key parties say they have struck a deal to create a new government following an inconclusive election and two months of political deadlock.

Friday night's agreement between the governing Fine Gael and the opposition Fianna Fail parties must be ratified at two separate meetings of party lawmakers. The deal means it's likely that caretaker Prime Minister Enda Kenny will be re-elected next week atop a minority Fine Gael government.

The Feb. 26 election weakened Fine Gael, leaving Kenny's center-right party without a viable coalition partner in a politically fractured parliament.

Fine Gael's age-old nemesis, Fianna Fail, had refused to cooperate with Fine Gael inside government. But Friday's deal means Fianna Fail lawmakers will abstain in the next leadership vote, giving Kenny victory and authority to form a new Cabinet.