Australian PM Malcolm Turnbull set to form govt after governor general's nod

Turnbull wrote to the governor general saying Opposition leader Bill Shorten had conceded defeat and the coalition had at least 74 seats

Australian Prime Minister Malcolm Turnbull is set to form a coalition government after Governor General Peter Cosgrove accepted his advice to return to power for a second time.

Turnbull, 61, wrote to Cosgrove saying Opposition leader Bill Shorten had conceded defeat and the coalition had at least 74 seats in addition to the support from two independents.

"In these circumstances I advise you that I am in a position to form a ministry that has the confidence of the House of Representatives," Turnbull wrote.

Noting Tunbull's advice, Cosgrove wrote back accepting the advice.

"I accept your advice that you are in a position to form a ministry that has the confidence of the House of Representatives," Cosgrove said.

"And I await your further advice on proposed changes to the ministry and related administrative arrangements," he said.

Cosgrove is currently overseas.

The prime minister met with secretary of the Department of Prime Minister and Cabinet Martin Parkinson in Canberra.

As counting continues, three contests remain close – Hindmarsh, Capricornia and Herbert – but the coalition is confident of having 76 seats in the 150-seat lower house.

The Nationals' 22 MPs, led by Deputy Prime Minister Barnaby Joyce, will meet tomorrow to discuss any changes to the agreement, which is essential to forming government.

Joyce will then meet with the prime minister on Wednesday.

There is pressure on the Liberal leader to give the Nationals an extra frontbench role, after the party gained an extra seat in the election, and conservative Liberals are seeking a stronger position in the ministry line-up.

Turnbull called an early election partly to establish a new mandate for his government after ousting unpopular Tony Abbott as conservative leader 10 months ago.

Shorten yesterday called Turnbull to congratulate him and conceded electoral defeat even as the vote counting was underway, according to media reports here.

"Whilst counting has not concluded in a number of very close seats, it is clear that Turnbull and his coalition will form a government," Shorten had said.

"I respect that our democracy has spoken, I respect that Turnbull has won the election. I hope for our nation's sake the Coalition does a good job; I hope they run a good government," he said.

Following this, Turnbull declared victory for his conservative coalition in the closely fought general election.

Turnbull thanked Australian people for voting him in.

"The most important people to thank are the Australian people because we have resolved this election," Turnbull had said.

After eight days of vote counting, Liberal-National coalition has won 74 seats in the 150-seat House of Representatives and Labor was at 66 seats with five seats still too close to call.

The coalition needs 76 seats to claim a majority in the lower house, the House of Representatives.