The Social Democrats have announced they will not participate in a minority Government with either Fine Gael or Fianna Fáil.

The fledgling party - who have three TDs in the new Dáil - says talks with smaller parties and independent TDs are only "delaying the inevitable" of a so-called grand coalition.

In a statement tonight, the party says it is now clear that no Government can be formed without "some form of arrangement" between the two biggest parties.

The party's co-leader Catherine Murphy says the Social Democrats would "actively encourage the two parties to accept that reality" and begin talks.

The Social Democrats say they welcome "the establishment of all party committee on political reform which is due to meet soon and bring proposals to the Dáil in the coming weeks. This offers the potential for a high level of cooperation among all members of the Dáil and we would propose a similar collaborative approach to tackling the big challenges facing the country in the areas of housing, health and child poverty for example.

"The Social Democrats believe this collaborative approach can facilitate more constructive engagement by all sides in the 32nd Dáil," they add.

All three of the party's co-leaders - Catherine Murphy, Stephen Donnelly and Roisín Shortall - were re-elected in the general election, having formed their new party last year.