Vienna  - Austrian Vice Chancellor Wilhelm Molterer stepped down Monday as the Conservatives' leader, one day after his party suffered heavy losses in Austria's parliamentary elections.

As Molterer announced that Agriculture Minister Josef Proell would take over his job at the helm of the conservative People's Party (OeVP), chances for continuing a governing coalition with the Social Democrats (SPOe) rose.

Social Democratic leader Werner Faymann won Sunday's election and has said he would like to continue to govern with the Conservatives, if they were led by Proell rather than by the 53-year-old Molterer.

Proell is widely seen as having a more charismatic personality than the Vice Chancellor, and has long been mentioned as his logical successor should the OeVP lose the elections.

The 40-year old politician has led the agriculture and environment ministry since 2003.

On Sunday, the OeVP collected an all-time low of 26 per cent of the ballots, reducing the number of its representatives in the 183-member parliament from 66 to 50.

Not only the Conservatives, but also the Social Democrats lost to far-right parties that appealed to those disenchanted with the political standstill of their coalition.

Proell said Monday he did not rule out an opposition role for his party.

"These days, there is no decision on coalitions or opposition, in whatever form," he said after having been named as new party chief.

However, he had said Sunday that the Conservatives would not govern with the Freedom Party and the Alliance for the Future of Austria on the far-right, which were the real election winners.

Although Austria's president will ask Social Democratic leader Faymann to form a coalition as Chancellor, the Conservatives could get their chance as Austria's second strongest party if Faymann fails to find coalition partners.

Faymann has likewise vowed not to cooperate with the far right.

Freedom Party leader Heinz-Christian Strache said Sunday that he should become Chancellor after gaining the most in the elections. The Alliance led by Joerg Haider indicated its interest in joining some form of coalition.

Wilhelm Molterer led the Conservatives since last April, taking over from the previous Chancellor Wolfgang Schuessel. (dpa)