The Democratic Party appears to have regained control of both houses of the U.S. Congress from President Bush's Republican Party.

Senate candidate Jim Webb, D-Va., gestures during remarks at election night event, Tuesday, Nov. 7, 2006

American media reports say that challenger Jim Webb has defeated Republican incumbent George Allen in the Senate race in the U.S. state of Virginia. It is the last Senate race from Tuesday's mid-term elections to be decided.

Allen has not yet conceded defeat, but major newspapers and television networks report that Webb holds more than a 7,000 vote lead.

Opposition Democrats have already swept to victory in the U.S. House of Representatives. Projections show that the party holds a majority of 229 seats in the 435-seat chamber.

If Webb indeed wins in Virginia, Democrats and Republicans will each hold 49 of the Senate's 100 seats. Two independents, Joe Lieberman of Connecticut and Bernie Sanders of Vermont, have pledged to vote with the Democrats, tipping the balance in the Senate to Democratic Party control.

The Democratic Party victory comes on the back of voter frustration with the war in Iraq and several political scandals. And it sets the stage for a number of policy battles with the White House. The Democrats have not controlled both chambers of Congress in 12 years.

President Bush has expressed disappointment with the election results, but he called on both political parties to work together. He is meeting separately Thursday, with Republican and Democratic congressional leaders.

Opinion polls showed that dissatisfaction with President Bush and his handling of the Iraq war drove many voters to vote for Democrats.

Democratic House Leader Nancy Pelosi of Calif., left, meets with Democratic Senate Leader Harry Reid of Nev. on Capitol Hill in Washington

Meanwhile, California Democrat Nancy Pelosi is poised to become the first female Speaker of the House. She has pledged to work with congressional Republicans.

Senate Democratic leader Harry Reid of the U.S. state of Nevada said the message from the electorate was clear, and that Americans voted for change.

Some information in this report was provided by AP, AFP and Reuters.