Prime Minister Katrín Jakobsdóttir's party has suffered losses in the parliamentary elections in Iceland, but her governing coalition retains a majority.

Jakobsdóttir's left-green movement is only the third strongest force on the North Atlantic island, as preliminary figures showed, which the radio station RÚV published on Sunday morning after all votes were counted.

The smaller of its two coalition partners, the Peasant Liberal Progress Party, can achieve strong gains.

The strongest force remains the third coalition party, the conservative independence party of the finance minister and former head of government Bjarni Benediktsson.

Iceland, with around 360,000 inhabitants, has been ruled by Jakobsdóttir for four years.

In 2017 she formed an unusual left-right coalition with the Independence Party and the Progress Party.

These three parties now have a stable majority of an expected 37 of the 63 seats in parliament.

It is still unclear whether the three parties want to continue to govern together.

Before the election on Saturday, however, their party leaders said that it would be their first option to talk about further intergovernmental cooperation.