Lib Dem leader Douglas McCall turned down an offer to work alongside the Conservatives in favour of remaining on the side of Labour after last week's election left Milton Keynes Council ion No Overall Control.
While the Tories received more votes across Milton Keynes than either Labour or the Lib Dems, Councillor McCall has plumped for an 'enhanced partnership' with Pete Marland's Labour group again.
Councillor Marland, who took over as leader of MK Council, now looks set to remain as leader - a post he has held since 2014.
READ MORE: Lib Dems outline demands to help form deal to run Milton Keynes Council
Announcing the extended partnership between the Lib Dems and Labour which has been in place for the last two years, Mr McCall said his party were offered seats on the Labour cabinet as part of the agreement, but said 'seats on the cabinet table weren't important.'
He said: “We carefully considered the responses from both parties. Labour offered us a coalition, but seats round the Cabinet table is not what is important to us. What is important is the delivery of policy, and in the end that was the main deciding factor.
"We have had a successful partnership with Labour over the last two years, and have agreed to enter into an enhanced partnership, which allows the Lib Dems to have a major influence on Council policy, and in which the whole of the Liberal Democrat and Labour manifestos will form the Council Plan.
“We rejected the offer from the Conservatives as they wanted to run a minority Administration on their own, with little if any say for the Lib Dems. We are also very concerned at their proposals to raid the Council’s reserves. In these times of austerity financial prudence is key, and we don’t want to follow the lead of neighbouring Conservative run Northamptonshire County Council, which only leads to bankruptcy.
"We look forward to continuing to work positively with Labour for the benefit of MK residents and to bringing stability to the NOC Council."