Billionaire Andrej Babis's ANO party cruised to victory in the Czech Republic's parliamentary election on Saturday, raising the prospect of a government that would boost Europe's populist, anti-immigration camp and reduce support for Ukraine.

An ebullient Babis told supporters that ANO would seek a one-party cabinet, but would talk with two small parties - including the far-right SPD - for support as his party will lack an outright majority.

He again rejected accusations that his win would make the central European nation a less reliable European Union and Nato partner.

"We want to save Europe ... and we are clearly pro-European and pro-Nato," Babis told reporters.

With nearly all results in, ANO was set to replace the current centre-right cabinet led by Prime Minister Petr Fiala.

Fiala congratulated Babis and conceded defeat.

ANO promised faster growth, higher wages and pensions, and lower taxes and tax discounts for students and young families during the campaign.

Those pledges - that will cost billions of euros, end austerity and test the country's frugal mindset - resonated with many Czechs who have seen their real incomes plunge in recent years as the country tackled soaring inflation.

Babis, however, must overcome some hurdles to become prime minister, including conflict-of-interest laws as owner of a chemicals and food empire and long-running fraud charges related to drawing an EU subsidy over 15 years ago - charges he denies.

With 99 percent of voting districts counted, ANO was leading on 34.7 percent and Spolu in second on 23.2 percent, the country's Statistical Office said.

President Petr Pavel, who will appoint the next prime minister, was expected to start talks with party leaders on Sunday.

ANO was seen winning around 80 seats in the 200-seat lower house, results projections showed, and so will need to find wider support.

Babis said he would talk to the Motorists, who oppose the EU's green policies, and the anti-EU and anti-Nato SPD.

ANO wants Nato and the EU to handle aid for Ukraine, and has abstained in some European Parliament votes supporting Kyiv and its bid for EU membership, which Babis has opposed in the past. (Reuters)