Macedonia's Parliamment sent a formal notice to inform President Gjorge Ivanov no government can be formed by VMRO-DPMNE leader Nikola Gruevski.
Ivanov earlier said he would kick off consultations with all political parties.
The two biggest parties, VMRO-DPMNE and SDSM, openly disagree on what Ivanov's next step should be.
VMRO-DPMNE of Nikola Gruevski and ethnic Albanian DUI party of Ali Ahmeti have not agreed to form a new government within the 20-day deadline which expired on Sunday.
No agreement has been reached on forming a new government between VMRO-DPMNE and DUI, state-run news agency MIA quotes Gruevski as saying.
The Democratic Union of Albania (DUI) on Sunday is expected to decide whether to join hands with conservative VMRO-DPMNE to form together with it the country's next government.
DUI has been refraining from a decision for days, almost exhausting the week-long deadline VMRO-DPMNE leader Nikola Gruevski has in order to form a cabinet.
VMRO-DPMNE leader Nikola Gruevski has been given a mandate to form the next government of Macedonia, state-run MIA news agency reports.
Gruevski's conservative party, leading a coalition in the snap parliamentary election in December, got the biggest number of votes, but won the poll only by a small margin.