With nearly all votes counted, the bloc led by Social Democrat leader Helle Thorning-Schmidt was headed for a narrow majority in parliament.

She is set to become Denmark's first woman prime minister. Incumbent Lars Lokke Rasmussen has admitted defeat.

Ms Thorning-Schmidt had campaigned on a platform of tax rises and increased public spending.

She also promised to roll back tough immigration laws proposed by a junior partner of the current coalition.

With almost all the votes counted, the centre-left bloc had taken 89 seats in Denmark's 179-seat parliament against 86 for the centre-right.