After 17 months of heading a one-party, minority government, Denmark's Prime Minister Lars Lokke Rasmussen announced on Sunday he had agreed to form a new government with the Liberal Alliance and the Conservative party.

Rasmussen first announced the deal on Twitter, saying a deal had been reached to form a "three-leaf clover" government along with his Liberal Party known as Venstre.

"We now have a platform we agree on, so Venstre, Liberal Alliance and the Conservatives can build, tomorrow, a tripartite government," Rasmussen told reporters.

The leaders of the three parties said they agreed to increase defense spending and ease taxes on home-owners and the wealthy.

Since June 2015, the Danish government has consisted only of Rasmussen's center-right Liberal Party which holds only 34 out of 179 parliamentary seats.