Portugal's opposition Socialists said Tuesday they were in a position to form a coalition government with the Communists and another leftist party.

"After the contacts we had with the Communist Party and the Left Bloc, we can say that we are in a position to form a government with a parliamentary majority," Socialist leader Antonio Costa said after a meeting with President Anibal Cavaco Silva.

Portugal's parties have been engaged in coalition talks since the October 4 election, in which the outgoing conservative coalition lost its majority.