The party's coalition partner, Chancellor Wolfgang Schuessel's conservative People's Party, increased its vote from 34% to 46%.

BBC: Election losses for Austria's far-right

"The unanimous decision is for the Eurofighter, the Typhoon, " Chancellor Wolfgang Schuessel said after a Cabinet meeting.

BBC: Austrian boost to Eurofighter project

Austrian President Thomas Klestil held separate meetings with Mr Haider and Mr Schuessel, on Monday, to get updates on the progress of coalition talks.

BBC: EU threat to Austria

He has announced that he will meet Social Democrat leader and caretaker Chancellor Viktor Klima and Mr Schuessel, on Tuesday, to discuss the EU decision.

BBC: EU threat to Austria