An anti-immigration party with past links to mass murderer Anders Behring Breivik looks set to help form Norway's next government.
The populist Progress Party is likely to become the junior partner in a coalition with the Conservative Party following national elections.
Breivik, 34, was a member of Progress in his youth, but later left the organisation because he believed it was not militant enough.
The party's popularity nose-dived in the aftermath of his massacres, but it has since toned down its anti-Islamic rhetoric and tried to present itself as a party of government.
Conservative Party leader Erna Solberg - nicknamed "Iron Erna" - will become Norway's new prime minister after her party got 26.8% of votes.
Jens Stoltenberg has conceded defeat It is the party's best result for 28 years.
"The voters had the choice between 12 years of red-green government or a new government with new ideas and new solutions," Ms Solberg said.
The current prime minister, Jens Stoltenberg, who has led Norway for eight years, conceded defeat, saying his Labour Party tried "to do what almost no one has done, to win three elections in a row, but it turned out to be tough".
Labour appeared set to remain the biggest single party though, with 30.8% of the vote.
The Conservative Party managed to attract votes with pledges to increase the availability of private health care and cut taxes on assets over £89,000.
Erna Solberg will become Norway's prime minister Frank Aarebrot, professor of comparative politics at the University of Bergen, said the election campaign was dominated by classical welfare issues, such as better care for the elderly, improved hospitals and better schools.
The Conservative Party has said for the first time that it is prepared to form a coalition government with the Progress Party, which was the third biggest party in the election.
Ms Solberg will now likely begin negotiations with them, as well as with the Liberal Party and the Christian Democrats.
According to preliminary results, she needs the support of all three parties to get a majority government, but could end up running a minority government with the Progress Party with support from the two others, if they refuse to share power with the Progress Party.
This was the first parliamentary election since Breivik killed 77 people in 2011.
Some 33 survivors of the massacre were seeking national office in the election.
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