German Chancellor's party won the same number of parliament seats with his challenger Angela Merkel's alliance in Sunday's election, latest poll showed.

Latest German TV ARD exit poll said that the Social Democratic Party (SPD) has won 222 seats in the Bundestag while the Christian Democratic Union and the Christian Social Union (CDU/CSU) has also got 222 seats.

The poll also shows that the CDU/CSU has gained 35.2 percent votes while the SPD has won 34.1 percent.

Earlier ARD projections gave CDU/CSU 35.5 percent and SPD 34 percent.

Both German Chancellor Gerhard Schroeder and his challenger Angela Merkel claimed victory in the election though exit polls show neither Merkel's alliance nor Schroeder's coalition won a majority to form a new government.

Speaking at a rally at the SPD headquarters, Schroeder said that Germany will be "under my leadership" in the next few years.

Earlier Merkel said she had "the a very clear mandate to govern " despite her bloc's failure to win a majority in the election.

Declaring that he would remain as the chancellor, Schroeder said Merkel is "arrogant" and too confident to say that.

Schroeder said that the CDU failed"dramatically" in the election. "It is a disastrous result for CDU," he said.

"We will begin coalition talks," he said. The chancellor ruled out forming a coalition with the Left Party, instead, he would seek cooperation with the Free Democratic Party (FDP).

"I regard myself as confirmed in office by our country and intend that there will be stable government under my leadership," he said.

SPD Chairman Franz Muentefering told a rally earlier that the result indicates that voters trust Schroeder, not Merkel.

"This is a personal defeat for Merkel," Muentefering said.

"Her dreams are shattered," the German TV ZDF was quoted by the German news agency DPA as saying.

However, addressing a rally at the headquarters of the CDU, Merkel said that CDU/CSU is the strongest force in the parliament.

Despite the lack of a majority, the alliance has a "very clear mandate to govern," she said, vowing to seek cooperation with other parties.

The key now is in the hands of the FDP, which has a symbol color of yellow. Both CDU/CSU and SPD needs cooperation from FDP.

Schroeder's remarks mean there can be a red-green-yellow government and Merkel needs to seek a third partner to form a grand coalition.

Source: Xinhua