Nehammer said that it was not possible to reach an agreement during coalition negotiations between his OVP party and the Social Democrats.
"I will resign as the federal chancellor and OVP chair in the coming days," Nehammer said in a statement.
The Austrian leader added that it had been an honor for him to serve his country as chancellor and as interior minister before that.
Austria’s political future has been in limbo since September’s parliamentary elections, where the populist anti-mass immigration, anti-Brussels, pro-neutrality, anti-Ukraine conflict Freedom Party of Austria (FPO) nearly doubled its standing, garnering over 29% of the vote and causing Nehammer’s ruling People’s Party/Green coalition to lose its parliamentary majority. Nehammer refused to form a coalition with the Freedom Party, and has sought to cobble together a new government with the New Austria and Liberal Forum (NEOS) and the SPOe, respectively, with both attempts ending in failure.