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Party leader Ivica Dacic made the announcement after a meeting of his senior officials.

President Boris Tadic's pro-Western bloc won last month's elections but his alliance fell short of the necessary majority.

The move by the Socialist Party follows weeks of wrangling.

State news agency Tanjug quoted Mr Dacic as saying: "The main board supported with a majority of votes the formation of a government with the pro-European alliance."

In a victory speech after May's election, President Tadic said the Serbian people had in effect given their approval to the country's future membership of the EU, with whom a long-delayed agreement was signed just before the election.

(BBC)

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