Wellington  - New Zealand prime minister-elect John Key, whose conservative National Party won the largest number of parliamentary seats in last weekend's election, was in talks Tuesday with political allies on the shape of his government.

Amid signs that he would run a minority government rather than a formal coalition, Key had a brief meeting with Rodney Hide, leader of the free market ACT party, and another with leaders of the Maori Party, which both won five seats in Saturday's election.

ACT has already pledged to support Key's party, which won 59 of the 122 seats in parliament. The pledge would give such a coalition a clear majority, but Hide admitted that negotiations had stumbled on climate change policies.

ACT campaigned on abolishing a trading scheme for greenhouse gas emissions introduced by the defeated Labour government while the Nationals said they would keep the scheme but amend it.

"I think it is quite difficult, yes, but there is no doubt there is good will and enthusiasm to work it through," Hide said after a meeting that finished much quicker than observers had expected.

Hide also had a swipe at another declared National ally, Peter Dunne, sole member of parliament for the centrist United Future party, saying he appeared to be more interested in a ministerial post than in negotiating policy.

The Nationals can govern without the Maori Party's five seats, but commentators said Key is keen to have its support in case relations with ACT, whose policies are well to his right, deteriorate.

The Maori Party's co-leaders, Tariana Turia and Pita Sharples, said they would consult tribal leaders before deciding whether to back the centre-right government or stay on the cross benches.

Key said he hopes to complete negotiations and name his cabinet by the end of the week. (dpa)