Official results released after so-called special votes were added showed no single party had the 61 seats needed to govern in the 120-seat parliament.
The conservative National Party of Prime Minister Bill English finished with 56 seats, down from the 58 it held after the September 23 polling day count.
The centre-left Labour Party and the Green Party picked up a seat each to give them 46 and eight respectively for their combined opposition bloc to close within two of National.
New Zealand's proportional representation electoral system means the major parties often have to rely on the support of smaller factions.
Peters has previously supported both of the main parties to form a government -- siding with National in 1996 and Labour in 2005.
He has opened preliminary coalition talks with both parties in recent days and given himself a deadline of next Thursday to make a decision.
Although neither English nor the charismatic Labour Party leader Jacinda Ardern have revealed what they are prepared to concede in talks with Peters, English said he was "determined" to lead the next government.
"Voters had a clear choice at the election between the two major parties that had a realistic prospect of leading the next government. They signalled very clearly that they wanted National to perform that role."
Although the final result has strengthened the opposition parties' negotiating position, they need to overcome historical differences between the Greens and Peters.
Disclaimer: No Business Standard Journalist was involved in creation of this content
