A new projection by Danish national television DR suggested Denmark's ruling centre-right coalition and its ally, the Danish People's Party, would come in one seat shy of an outright majority.
The parties appear to have won 89 seats in the 179-seat parliament in today's election.
Prime Minister Anders Fogh Rasmussen
In its projection, which was based on 43.6 per cent of votes counted, DR saw Prime Minister Anders Fogh Rasmussen's centre-right governing coalition winning the vote, with the Social Democrat-led opposition trailing with 81 seats.
Centrist party New Alliance, which has pledged to support Mr Rasmussen to remain prime minister, was projected to win five seats.
Mr Rasmussen called the early election last month, wagering that his economic record and crackdown on refugees would secure a third term for his centre-right coalition before tough 2008 wage talks.
Mr Rasmussen (54) has lost the clear lead he had in polls when he called a snap election 15 months ahead of a February 2009 deadline.
He and his allies were neck-and-neck with Social Democrat leader Ms Helle Thorning-Schmidt (40), who heads Denmark's four-party opposition, in the last opinion polls.
"There is truth in the old saying don't sell the skin until you have caught the bear," Mr Rasmussen said yesterday in the last televised party leader debate of the three-week campaign. "The voters will decide tomorrow. It will be a close run."
Ms Thorning-Schmidt, daughter-in-law of former British Labour Party leader Neil Kinnock has said it is impossible to have both lower tax cuts and better welfare and has ruled out a "grand coalition" with Mr Rasmussen's Liberals.
"I have asked the Danes to prioritise. I have told it like it is - it can't be cheaper to be Danish as well as better to be Danish," Ms Thorning-Schmidt said.