Turkey’s ruling party will talk to the opposition on forming a coalition government after it lost its overall parliamentary majority in legislative elections, Prime Minister Ahmet Davutoglu said Wednesday.

Turkey's ruling party will talk to the opposition on forming a coalition government after it lost its overall parliamentary majority in legislative elections, Prime Minister Ahmet Davutoglu said Wednesday.

However he warned that the Justice and Development Party (AKP) would consider every option, including early elections, if the discussions fail.

"Only the AKP will lead the coalition talks but if others block the road we will think of every option," he said in a live interview with state television, in a reference to possible new polls.

Davutoglu said he was prepared to meet with all of the three opposition parties who won seats in parliament, including the pro-Kurdish People's Democratic Party (HDP).

"I will sincerely meet with every opposition party. We have no red lines," he said.

"We always said a coalition is not the best option but if the people make such a choice, what falls on us is to make the best of it."

The AKP unexpectedly lost its overall majority in the polls, in what was seen as a major blow for the Islamic-rooted AKP which has ruled Turkey for the last 13 years.

The election results meant the AKP will have 258 seats in the hung 550-seat parliament, the Republican People's Party (CHP) 132, and the Nationalist Movement Party (MHP) and the HDP 80 apiece.

Davutoglu said the AKP would carry out a survey to find out where it went wrong in the elections and also what kind of coalition its voters wanted, while stressing it was still "a success" that his party took the largest share of the ballots.

Markets had after the vote been rattled by the prospect of fresh elections but the possibility appears to have receded in recent days in favour of a coalition.