THE leader of Greece’s left-wing Syriza party, which has won the country’s parliamentary election for the second time this year, has said he will form a coalition government with the small right-wing Independent Greeks.

Speaking before thousands of jubilant supporters in central Athens, Alexis Tsipras said he was joining forces once again with Panos Kammenos, the junior coalition partner with whom he governed from January until last month.

With 61 per cent of the vote counted, Syriza had 35.5 per cent of the vote and 145 seats in the 300-member parliament, while the Independent Greeks were in seventh place with 3.6 per cent and 10 seats.

The conservative New Democracy was in second place with 28.2 per cent.

The result was a resounding success for Mr Tsipras who resigned last month and triggered early elections in order to face down a rebellion within Syriza over his policy U-turn to accept austerity measures in return for Greece’s third international bailout.

Mr Tsipras has argued he had no choice but to accept the demands of European creditors for more tax hikes and spending cuts in return for Greece’s third rescue, a three-year package worth 86 billion euro. Without it, Greece - which has relied on international rescue loans since 2010 - faced bankruptcy and a potentially disastrous exit from Europe’s joint currency.

Celebrating Syriza’s victory, supporters cheered, waved party flags and danced as New Democracy head Vangelis Meimarakis conceded defeat on Sunday night and called for a government to be formed quickly.

“The election result appears to be forming comprehensively with Syriza and Mr Tsipras coming first,” Mr Meimarakis said. “I congratulate him and call on him to form the government that is necessary, and bring the (proposal) to parliament.”

A total of eight parties appeared set to win parliamentary seats. The new anti-bailout Popular Unity party, formed by rebel Syriza members who objected to Mr Tsipras’ agreement to a third bailout for Greece, was projected to fall just shy of the 3 per cent parliamentary threshold.

A tired-looking Mr Tsipras was hugged by party supporters as he arrived at Syriza headquarters, waving to the crowd gathered outside.

“What a result! It’s hard to describe. Tsipras will fight for the people - for Greece and for Europe,” said Maria Nixa, a 58-year-old private company employee celebrating outside Syriza’s main election campaign booth in central Athens.

Pensioner Antonis Antonios, 75, echoed her sentiments.

“It’s a great and hopeful result. We are moving forward. I am waiting for the next government to put up a fight,” he said. “They are the only ones capable of a brave struggle.”

It is the third time this year Greeks have voted, after January elections that brought Mr Tsipras to power and a July referendum he called urging voters to reject creditor reform proposals.

This has been linked to the high level of abstention in Sunday’s vote, with nearly 45% of voters failing to turn out in an election-weary country.