Sweden's Social Democrat prime minister, Magdalena Andersson, accepted defeat on Wednesday after a close-fought election, handing the four-party right-wing opposition bloc victory and first go at forming a new government.

A handful of votes remain to be counted, but Andersson, who became Sweden's first woman prime minister last year said the results showed the right bloc had won.

The Moderates, Sweden Democrats, Christian Democrats and Liberals had held a one-seat lead after Sunday's election but looked like getting 176 seats in the 349-seat parliament to the centre-left's 173 seats, according to the latest figures from the election authority. 

The result still has to be officially confirmed, probably by the weekend.

(With input from Reuters)