Two of the three country-based independents have agreed to back a minority Labor government.
Their decision means Julia Gillard will be the Prime Minister of the next federal government.
Rob Oakeshott and Tony Windsor announced their support for Labor and Prime Minister Julia Gillard at a press conference this afternoon, while Bob Katter earlier declared support for the Coalition.
A minority Labor Government means Member for Bendigo Steve Gibbons will return to power.
Mr Gibbons said he "could have strangled" independent MP Rob Oakeshott for his drawn out decision speech, but is delighted with the result.
Mr Gibbons will return for his second term in government, his fifth term in parliament.
He will attend a party caucus meeting in Canberra on Thursday ahead of Prime Minister Julia Gillard announcing her front-bench.
The independents' decision ends 17 days of uncertainty after the August 21 election resulted in a hung parliament.
More in tomorrow's Bendigo Advertiser.