Electoral officials in Iceland say general election results from about 60% of the vote counted so far give the governing coalition of Prime Minister David Oddsson a slight lead.

Mr Oddsson's conservative Independence Party is facing a tough challenge from the centre-left Social Party led by former Reykjavik mayor, Ingibjorg Sorlun Gisladottir.

Mr Oddsson is Europe's longest serving prime minister. He has been at the helm for 12 years, and victory would give him a fourth consecutive term in office.