UPDATE 1-Spain's Sanchez seeks to avoid election, Podemos coalition offer off

Spain's Socialist leader Pedro Sanchez will keep working with all parties to avoid a repeat election but is no longer prepared to offer a coalition government to far-left Podemos after it blocked his attempt to be confirmed as prime minister.

Deputy prime minister Carmen Calvo said on Friday other options, such as parliamentary support similar to that given by the far-left to the Socialists in neighboring Portugal over the past four years, can be explored in talks with Podemos over the next two months. "We have tried to have a coalition government and Podemos blocked it. There is no path in that direction... Other formulas can be explored, but not the coalition," Calvo said.

In a parliamentary election three months ago, the center-left Socialists led by Sanchez garnered the most votes but fell short of a majority, leaving him in limbo amid an increasingly fragmented political landscape. He has been serving as acting prime minister while trying to win parliamentary backing to form a government. This week he lost two votes after Podemos withheld support.

In theory, Sanchez has until mid-September to win parliament's backing. Failing that, a new election would have to be called on Nov. 10. Calvo said Sanchez "will keep on working with the rest of political leaders so as to have a government and avoid a new election".