The conservative Civic Democratic Party, which won the most votes in the June 2-3 ballot, signed the agreement with the center-right Christian Democrats and the Green Party. Their coalition would have only half of the lower chamber's 200 seats.
Under the agreement, the Cabinet would have 16 members, with the two smaller parties holding three posts each. The Civic Democratic Party would be given the post of the prime minister.
The agreement also outlines the Cabinet's program, including the introduction of a flat income tax for individuals and companies, the government's commitment to lower the country's budget deficit or its commitment to fight corruption, according to the AP.
Last week, Prime Minister Jiri Paroubek indicated that his Social Democrats may support Topolanek's government, but said the conservatives must abandon some of their plans, including the flat tax.
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