Three parties of the collapsed Czech coalition government have agreed to form a new cabinet, ending a months-long political crisis.

Prime Minister Stanislav Gross, who is to resign, said the parties have agreed to create what he called a pro-European majority and democratic government.

President Vaclav Klaus welcomed Thursday's news as a way out of the political crisis.

The coalition collapsed last month when the centrist Christian Democrats dropped out over questions about the financing of Mr. Gross' luxury apartment.  He has denied any wrongdoing, but offered to resign once a new cabinet is formed.

The country's ambassador to the European Union, Jan Kohout, is expected to become the new prime minister.

Some information for this report provided by AP, Reuters, AFP.