Sairoon, headed by Shia cleric Muqtada al-Sadr, and Fatih, led by Hadi al-Amiri, have agreed to join coalitions to form the next government, Iraqi media outlets reported on Tuesday.
But at a joint press conference with Amiri in the Shiite holy city of Najaf, Sadr hailed the formation of "a true alliance to accelerate the formation of a national government away from any dogmatism".
This is more what Sadr has long advocated.
"Our meeting was a very positive one". Our new alliance is a nationalist one.
Al-Sairoon Coalition, the victor of Iraq's May 12 parliamentary elections, and Iranian-backed Hashd al-Shaabi's al-Fatih Coalition have reached an agreement to create the largest alliance in the next Iraqi Parliament.
The announcement comes exactly one month after an election marred by historically low turnout and fraud allegations.
The two sides stressed that they would keep the door open for other winning blocs to join them in forming a new government.
Sadr and Amiri are odd bedfellows.
Sadr, a former militia leader who led two uprisings against the US-led invasion of Iraq, has called for his country to be more independent from both Iran and the US.
"An alliance has been formed between the Sairoun alliance and Fatih to create the largest bloc", Sadr said, according to The New Arab's Arabic-language service.
Confusion has gripped Iraq since Sadr's electoral alliance with communists won the vote.
Hadi al-Amiri, head of the Iranian-backed Badr Organization and leader of the Fateh Alliance, a coalition of Iranian-supported militia groups, speaks during a campaign rally in Baghdad on May 7, 2018.
Many of Iraq's longtime political figures were pushed out of their seats by new faces in the elections. Abadi made the statement after the parliament called for a nationwide recount of votes, drawing calls for the elections to be re-run.
Parliament mandated the recount after Abadi said a government report showed there were serious violations.
A few days later, a storage site housing half of Baghdad'sballot boxes caught fire, raising tensions and prompting some to call for the election to be repeated.
An Iraqi court ordered the arrest of four people accused of setting fire to the storage site.
"The matter is exclusively in the hands of the judiciary, not politicians".
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