Conservative leader David Cameron has held a press conference. He said he is "incredibly proud" of the result and his party's campaign.
He has stated he wishes to make comprehensive offer to the Liberal Democrats. David Cameron says the UK needs a strong government to deal with the war in Afghanistan, the economy and cleaning up politics. These are problems which are too urgent to allow party bickering, he adds. The Tory leader says it is reasonable to expect the bulk of his policies should be implemented in a deal with the Lib Dems. But there are opportunities for negotiations, he adds. He cites education policy and creating a low-carbon economy. David Cameron says the Tories and Lib Dems can discuss electoral reform, with an all-party committee of inquiry set up to discuss the issue.
Although he said there would be no compromise on making spending cuts this year, that might be a sticking point.
The key question to ask is whether David Cameron is talking about just a deal with the Lib Dems or a full coalition.
Tory sources are saying that Cameron was apparently stopped by his shadow cabinet from going further on a more substantial offer. Liberal Democrat spokesmen are saying that it is a interesting offer and will consider it.