The Labor Party has been declared the winner in the tight Queensland election race, forming a minority government after the party was declared to have won 44 seats on Friday afternoon.

The announcement was made by the Electoral Commission of Queensland, with the ABC reporting Labor leader Annastacia Palaszczuk could be sworn in as early as Friday.

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The Liberal National Party has been left with just 42 of the 78 seats they controlled before the January 31 election, representing a large swing to Labor.

The victory marks an incredible comeback for the Labor Party, which was left with just seven seats after the 2012 state election.

The ALP will form a minority government with the support of Sunshine Coast independent MP Peter Wellington.

Former QLD Premier Campbell Newman. Photo: AAP

Former Premier Campbell Newman resigned on Tuesday and will remain in a caretaker role until Ms Palaszczuk is sworn in.

Labor has slowly improved their fortunes since 2012, picking up two seats at the by-election with large swings toward Labor of 17 and 19 per cent.

The election result is another win for the Labor Party, which also formed government in Victoria in December.

Ms Palaszczuk first entered parliament in 2006 in the seat of Inala, vacated by her father Henry.

The career politician grew up in the Brisbane suburb of Durack.

She entered politics as a ministerial advisor before leaving to prepare for a career in law.

The 45-year-old returned to the political arena as an MP after the retirement of her father.

Australian born, but of Polish descent, Ms Palaszczuk’s name (pronounced Pal-a-shay) has caused some difficulty, particularly for Mr Newman.