VIENNA (Reuters) - Austria's far-right Freedom Party (FPO), which won September's parliamentary election with 29% of the vote, is due to start coalition talks with the conservative People's Party (OVP) this week aimed at creating the country's first FPO-led government.

Talks to form a coalition government led by Austria's far-right Freedom Party (FPO) will begin on Friday, the party said on Thursday, as thousands protested in Vienna against the prospect of the country's first FPO-led government.

The leader of the anti-immigrant Freedom Party of Austria, founded by former Nazis in the 1950s, was expected to be asked to enter into talks to form a new government.

STORY: Josef Binder may get a second chance at seeing his dream Austrian government.He voted for Herbert Kickl's far-right Freedom Party of Austria - or FPO - in the September polls.And the collapse of the country’s centrist coalition talks on Sunday (January 5) has put Kickl in the driving seat.

Austria headed on Sunday towards coalition talks led by the far-right Freedom Party (FPO) after efforts to form a government without the party fell apart and prompted Chancellor Karl Nehammer to resign.

Austria's far right, tasked for the first time with trying to form a government, warned on Tuesday of a "difficult" mission as relations with the conservatives are tense.

Austria's conservatives said Sunday they were ready to start negotiations with the far-right Freedom party (FPOe) to form a new government, a policy U-turn after coalition talks with two centrist parties failed.

Karl Nehammer says he will resign in the coming days after talks on forming a government without the far right break up.