Conservative leader David Cameron said it was "clear" that Labour had lost their right to power, after the Tories gained the most seats in the election. Meanwhile, the leader of Liberal Democrats Nick Clegg has offered his support to Cameron to form the government.
The Tories have won 291 of the 621 seats declared, with the Labour running second with 251 seats.
The surge in popularity of for Liberal Democrats leader Nick Clegg after the television debates has not translate into votes as the party won just 52 seats.
Though the Tories have nearly won the 2010 general elections, the numbers will be insuffiencient for form a government. Of the total 650 seats, a majority of 326 seats is needed to take over as the government.
Cameron said it was "clear that the Labour government has lost its mandate to govern".
Earlier in the day, Prime Minister Gordon Brown had said he wanted to give UK a "strong, stable and principled government".
Downing Street had said the Labour leader would try to form a coalition in case of a hung parliament.
Shadow foreign secretary William Hague told BBC that any attempt by Brown at securing a pact with Liberal Democrats "would be a shameless piece of politics".
The vote percentage of the Liberal Democrats had gone up by 1 percent compared to 2005 results, the Labour have lost 7 percent votes, while the Conservatives have gained by 4 percent.