Micheál Martin, right, is presented with Ireland’s seal of office by President Michael D Higgins in Dublin. Maxwell Photography-PA

Micheal Martin has been elected Ireland’s new prime minister on Saturday after his centre-right Fianna Fail party sealed a historic coalition deal with long-time rivals Fine Gael as well as the Green Party.

The election of Martin, who replaced Leo Varadkar as Taoiseach during a special sitting of the Dail parliament, comes after months of negotiations between the parties following elections in February.

“To be elected to serve as Taoiseach of a free republic is one of the greatest honours which anyone can receive,” Martin told the parliament.

He said that the most immediate issue facing Ireland was the impact of the coronavirus pandemic.

“At the same time, we know that there are other great challenges which we faced before the pandemic and which remain to be overcome,” he said.

These challenges included affordable housing, hospital waiting times and climate change, the new leader said.

Ireland also faces the economic fallout from the virus as well as a potential no-deal Brexit.

The 59-year-old political veteran was later presented with the seal of office by Ireland’s president, Michael D Higgins.

Martin is due to announce ministers in his new administration later in the day.

He takes over from centre-right Fine Gael’s Varadkar in an historic reconciliation of Ireland’s two major parties – and sworn political rivals – which dates back to the foundation of the state a century ago.

Varadkar said the agreement meant that “today Civil War politics ends in our parliament”.

“Two great parties coming together with another great party, the Green Party, to offer what this country needs, a stable government for the betterment of our country and for the betterment of our world,” added the outgoing premier.

Under the agreement, Fine Gael is set to regain the post of Taoiseach at the end of 2022.

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