Negotiations between Austria's far-right Freedom Party (FPÖ) and the conservative People's Party (ÖVP) are said to be stalled over a dispute regarding control of the country's interior ministry.

The two parties have been in discussions to form a government since January, following the breakdown of previous talks between the ÖVP, the centre-left Social Democrats (SPO), and the liberal Neos party.

The FPÖ, led by the controversial Herbert Kickl, secured first place in the September parliamentary election with around 29% of the vote. However, it has struggled to find other parties willing to align with its Eurosceptic and Russia-friendly agenda, Euro News reports.

Local media reports suggest that upcoming talks between the FPÖ and the ÖVP are expected to be tense, as both parties are competing for control of the interior ministry, which oversees law enforcement and plays a key role in managing the nation's migration and asylum policies.

Last week, Kickl publicly argued that he should control both the interior and finance ministries. The ÖVP deemed this “unacceptable,” asserting that both departments should not be under the FPÖ's control. However, the ÖVP has reportedly softened its stance on the finance ministry in recent days, according to the Austria Press Agency.

In addition to the interior ministry, reports on Sunday indicated that a compromise on foreign policy might be taking shape. Local media suggested that the FPÖ offered the ÖVP control of the foreign ministry, as well as responsibility for the country's European Union agendas.

The two parties also reached an agreement in January to reduce the nation's budget deficit. However, there are still significant areas for discussion, as the FPÖ and ÖVP disagree on several policy issues, and tensions between their politicians, including personal animosities, remain a challenge.

A report by Austrian public broadcaster ORF stated that the FPÖ is opposed to accepting the World Health Organisation (WHO) pandemic treaty and is seeking to withdraw from NATO's Partnership for Peace treaty, designed to foster trust and cooperation between NATO member states, according to its official website.

The ÖVP framed entering coalition talks with the FPÖ as a last resort, with former leader Karl Nehammer having previously insisted he would not negotiate with Kickl. Nehammer resigned after his failure to form an alternative coalition.