MADRID’S conservative leader Isabel Diaz Ayuso could form a coalition with Spain’s far-right Vox Party after she failed to win an overall majority in Tuesday’s highly polarised election.

Her Popular Party (PP) won 44.7 per cent of the vote to secure 65 seats in Madrid’s 136-seat assembly, more than doubling its presence in the regional parliament. The three-party left bloc took just 58 seats.

Pablo Iglesias, leader of left-wing party Podemos, who stood down as Spain’s deputy prime minister to challenge Ms Ayuso, said he would now leave politics altogether.