Bob Katter, one of three independent Australian MPs who hold the balance of power in parliament has said he will support opposition leader Tony Abbott.
The two other MPs - Tony Windsor and Rob Oakeshott - are due to reveal their decision soon.
There has been political deadlock in Australia since last month's inconclusive election.
The Labor Party, led by caretaker Prime Minister Julia Gillard, has 74 seats to the conservative opposition's 73.
Mr Katter's support for Mr Abbott evens them up.
Both leaders now need the support of Mr Windsor and Mr Oakeshott to gain a majority of 76 seats.
If they split, it is a dead heat and Australians face a return to the polls.
Mr Katter said he had not spoken to the party leaders before announcing his decision.
"I haven't told anybody at all," he said, adding that his move would not have any bearing on the decision of the other two.
"I said 'That's my decision, fellas. I'm really sorry, I'm locked in'."
The BBC's Nick Bryant, in Sydney, says that with negotiations over the formation of the next government now in their third week, there has been growing public impatience with the time it has taken the rural-based MPs - dubbed the three amigos - to reach their decision.
The elections on 21 August produced Australia's first hung parliament in 70 years.
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