Sweden’s ruling centre-right coalition is heading for a second term after yesterday’s election, exit polls showed, and an emerging far-right party will for the first time enter Parliament.

Prime Minister Fredrik Reinfeldt, 45, should see his four-party Alliance become the first right-leaning government to win a second term in nearly a century.

But with just 49.1 per cent of the vote, according to exit polls broadcast on Swedish public television, Mr Reinfeldt’s coalition is likely to fall narrowly short of a majority of seats in Parliament.

His task will also be complicated by the fact that the far-right Sweden Democrats appeared to have clearly passed the four-per cent barrier needed to get into Parliament.

Even with a handful of Parliamentary seats, observers have cautioned the far-right party could play kingmaker or spoiler, forcing Mr Reinfeldt to seek new alliances or even make it so difficult to govern that new elections would need to be called.