Spain's acting Prime Minister Mariano Rajoy on Friday abandoned attempts to form a government due to lack of support in parliament, a statement issued by the royal palace said.

"His majesty the King nominated him to form a government. Mr Mariano Rajoy thanked his majesty the King but declined the offer," the statement said, a month after inconclusive elections. The king will now hold a fresh round of consultations to chose another candidate.

Rajoy's conservative Popular Party (PP) won the most seats (119) in the December poll but fell well short of an absolute majority in the 350-seat parliament