REYKJAVIK - Icelandic President Olafur Ragnar Grimsson was trying to put together a new government on Tuesday, the day after Prime Minister Geir Haarde's coalition collapsed in the face of public protest over the financial crisis.

Haarde, leader of the Independence Party, tendered his resignation on Monday after extensive efforts to save his coalition with the Social Democratic Alliance failed.

The leaders of the parties met Grimsson one by one late into Monday night but talks ended without resolution.

"It's safe to say that no government in the history of Iceland has had to deal with as many and as complex problems as the one that is now leaving office," Grimsson told reporters at his residence late on Monday.

Iceland's ruling coalition collapsed under pressure from sometimes violent demonstrations, the first government to fall as a direct result of the global economic crisis.

Analysts said a minority government of the Social Democrats and the leading opposition party, the Left-Greens, was the most likely outcome of Tuesday's talks.

Daily Morgunbladid said if a minority coalition becomes a reality it would be put together by two parties that disagree on many issues.

"All political parties are already campaigning for the next election. It is not at all for sure that a new government will be any more efficient, in these troubled times we are facing, then the one that resigned yesterday."

Steingrimur Sigfusson, leader of the Left-Green Party, told reporters on his way out of his meeting with Grimsson the likelihood of a national unity government was fading.

The global financial crisis hit Iceland in October, ending a decade of rising prosperity by triggering a collapse in the currency and financial system.