Australian Prime Minister Julia Gillard said on Monday that she and her deputy Wayne Swan will be meeting in coming days with the three re-elected independent and a newly-elected Green party Members of Parliament, who are likely to hold balance of power in forming a minority government.

Gillard told reporters that she and Swan will publicly report on how the negotiations were proceeding.

"I do want to sensibly manage the expectations of Australians as this process takes place, it will take a period of time," Gillard told reporters at Parliament House in Canberra on Monday.

Gillard said a stable government is the priority of Labor at the moment. She refused to answer questions if she or the Opposition Leader Tony Abbott has better relationship with the independent and Green MPs, but said that Labor is able to provide a stable government for the Australian people.

Meanwhile, Tony Abbott has returned to Canberra Monday morning, as he competes with Gillard to woo independents.

Saturday's general electon is set to create Australia's first hung parliament in 70 years as neither Labor nor the opposition coalition was likely to win the 76 seats needed for an outright majority in the 150-member lower house.

According to Australian Election Commission, after 78.27 percent of votes having been counted so far, Labor won 72 seats, while Liberal/National coalition had 69 seats.