South Africa's Inkatha Freedom Party (IFP) will join a unity government with the African National Congress (ANC) and the Democratic Alliance (DA), it said on Wednesday, giving a strong indication of who will govern the country.

The ANC, which lost its majority in a May 29 election but remains the largest party, has been talking to a broad spectrum of political parties to try to set up a government of national unity.

The final composition of the government has not yet been announced, but the comments by IFP leader Velenkosini Hlabisa gave the most precise picture of how negotiations are shaping up ahead of the newly elected parliament's first sitting on Friday.

Many ANC supporters strongly oppose a coalition with the pro-business DA, which is the largest opposition party but has struggled to shed its image as a defender of white privilege.

Analysts have speculated that including the IFP, a conservative party with an ethnic Zulu base, could help temper those concerns.

"We will participate in the government of national unity for the sake of our country and for the sake of our people, who want life to continue with a stable government that will address their challenges," Hlabisa told reporters at a news conference.

Spokespersons for the ANC and the DA did not immediately reply to requests for comment.

Parties have been rushing to reach agreement before Friday, when the National Assembly will meet to elect its speaker, deputy speaker and the country's president.

President Cyril Ramaphosa is highly likely to be reelected since the ANC has the highest number of seats, but key positions such as speaker of parliament and deputy president are the subject of behind-the-scenes negotiations. (Reuters)