The Scottish Conservatives say a deal has been struck to run Stirling with Scottish Labour, edging out the larger SNP.
The four-strong Conservative group said it will help to run the authority with eight Labour councillors despite the SNP emerging as the largest group in the local government elections last week with nine councillors.
Alistair Berrill, leader of the Conservative group, said: "We have always said we will work together with other parties to do the best for Stirling.
"This power-sharing deal allows us to work on our key election priorities of focus on the frontline, balancing the council's books and making our schools system better.
"There will be disagreements along the way but we are confident that a good working relationship can be built between the two parties, and we can truly gain great achievements for the people of Stirling."
The party said it will take senior positions in finance and education.
However, Stirling SNP group leader Graham Houston reacted angrily to the news. He said: "Labour's desire for power at all costs has seen them lure this hapless Tory group and we await details of how cheaply they have been bought off.
"The dead hand of Labour will grip the levers of power in Stirling once again. The real losers will be the people of the Stirling Council area, who after rejecting Labour at the ballot box will nonetheless see Labour entrenched at the helm of Stirling Council."
The Conservatives and Labour agreed on Wednesday to run Aberdeen in coalition.
More About Local elections 2012
- Scotland’s councillors get back to work as the dust settles on elections
- New coalition in Edinburgh sets out promises for next five years
- Voters go to the polls a week late to elect final three councillors
- Councils in Lothians strike deals after days of negotiations
- Councils across Scotland starting to take shape after days of negotiations
- Negotiations across the Lothians in the wake of local government elections
- Labour and Conservatives set to form coalition to run East Lothian Council
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