Fiji's military-installed prime minister Mr Laisenia Qarase closed the gap with deposed leader Mahendra Chaudhry, capturing a block of indigenous Fijian seats in the racially charged election.
Mr Qarase's party has taken 19 seats and Mr Chaudhry's Labour party has 24 seats, with about half the South Pacific nation's votes tallied for the 71-seat parliament, election officials said.
The SDL now appears to be coming on strong, an election official said, referring to Mr Qarase's Soqosoqo Duavata ni Lewenivanua party.
The final result of the week-long vote, which began on August 25, is expected in the next few days.
The election is the first since Mr Chaudhry's government was ousted in a coup in May 2000. Mr Qarase was later named as prime minister of a caretaker administration by the military.
Coup leader Mr George Speight, in prison awaiting trial for treason, also won a seat in the election.
But it was unclear if he will ever sit in parliament, even though his radical indigenous party looked set to play a crucial role.
The showing by Mr Chaudhry's Labour and Mr Qarase's SDL parties guarantees a coalition government drawn on ethnic lines. A party needs a minimum of eight seats to gain a place in the government.