Denmark's Social Democrat leader forms new leftist government

Denmark's Social Democrat leader has announced she will form a minority government after reaching an agreement with three left and centre-left parties after weeks of negotiations.

"Now we have reached the goal... we have shown that when Danes vote as they have done, a new majority can turn their hopes into actions," said Mette Frederiksen, who will become prime minister in a country where minority governments are the norm.

The opposition Social Democrats won a June 5 general election as expected, ousting Liberal prime minister Lars Lokke Rasmussen's minority government after several of his key allies suffered scathing losses at the polls.

Frederiksen said she will present the 18-page agreement on Wednesday, with the new government expected to be unveiled on Thursday.

"It is a political document, one of the first in the world, that really defines green ambitions," she said.

"We will develop a climate plan, a binding law on climate and reduce greenhouse emissions by 70 per cent.