MADRID - Acting Prime Minister and Spanish Socialist Workers' Party leader (PSOE) Pedro Sanchez, and Pablo Iglesias, the leader of the left-wing Unidas-Podemos party, on Tuesday signed a "pre-agreement" for the two parties to form a coalition government in Spain.

The agreement comes just two days after Sunday's general election in Spain once again provided a divided Congress of Deputies (lower chamber in the Spanish parliament) with both the Socialists and Unidas Podemos losing seats.

The two parties now have a total of 155 deputies in the 350 seat chamber and despite the agreement with Undios-Podemos, Sanchez will still need the support of some of Spain's smaller parties in order to win an investiture vote.

This will be the first Spanish coalition gtovernment since 1975.