Bangkok  - A new Thai coalition government under the former opposition Democrat party took a step closer to reality Sunday when its chief rival acknowledged it had failed to set up a coalition.

Deputy House Speaker Apiwan Wiriyachai, a leader of the Puea Thai Party, admitted that it was preparing to become the opposition.

The Democrat party announced Saturday night that it had mustered enough support from the "Friends of Newin" breakaway faction from the Puea Thai and its former allies the Chart Thai, Matchiamathipataya, Puea Paendin and Ruam Jai Thai Chart Pattana parties to form a new coalition government.

The new alliance provides a Demrocat-led government about 260 seats in the 447-seat Lower House of Parliament, with the Democrats holding 165 seats. The Puea Thai party, a reincarnation of the now defunct People Power Party, holds 181 seats with its remaining ally the Pracharaj party, with 5 seats.

If the new political alliance does not fall apart between now and the reconvening of Parliament some time this week, Democrat leader Aphisit Vejjajiva is likely to become Thailand's next prime minister.

The development could take Thailand a step towards political normalcy after six months of street protests by the People's Alliance for Democracy (PAD) that culminated in the seizure of Bangkok's two airports that shut the capital off from commercial flights for a week, crippling the economy.

The Democrats will face a daunting task restoring international confidence in Thailand and repairing the economy, observers said.

"It will be difficult for them to solve these problems because the problems were actually caused by their allies the PAD," said Chaturon Chaisaeng, a senior politician with close ties to the former government. "Now it's their baby."

Suvarnabhumi International Airport officially reopened Friday, after being shut down November 26 to December by thousands of anti=-government protestors.

The PAD, which has received moral support from the Democrats and members of Thailand's political elite, is a movement dedicated to blocking the return of fugitive former premier Thaksin Shinawatra to power, and ending his behind-the-scenes control over his political allies.

The protestors lifted their siege of Suvarnabhumi Wednesday after former prime minister Somchai Wongsawat, Thaksin's brother-in-law, was forced to step down by a court ruling that their People Power Party (PPP) committed fraud in the December 23, 2007 polls. The ruling banned Somchai and half the former cabinet from politics for five years.

Two other former coalition partners of the PPP, Chart Thai and Matchiamathipataya were also dissolved by the court ruling.

Elected members of parliament from the three dissolved parties have shifted to other newly set up parties with the majority of the PPP moving to Puea Thai.

But a PPP faction loyal to Newin Chidchob, whose father Chai is the current House speaker, reportedly shifted alliance to the Democrats after seeking advice from the politically powerful Army Commander-in-Chief General Anupong Paochinda.

Thailand is currently under a caretaker government headed by acting Prime Minister Chaovarat Chanweerakul, another Newin ally.

The political development was seen as a blow for Thaksin, the prime mover behind the last government.

"Thaksin was overly confident that he could ride all the tigers at once but one of them turned out to be an eel," said one close Thaksin aide of Newin's switch in allegiance.

Thaksin was ousted by a military coup in September 2006, and was found guilty of abuse of power in an October 21 court ruling for allowing his wife to successfully bid on a plot of prime Bangkok land at a government auction during his premiership in 2003.

The Supreme Court for Poltical Office Holders sentenced Thaksin to two years in jail.

Thaksin criticized the verdict as being politically motivated and recently vowed to return to politics, despite his fugitive status. (dpa)