Pablo Iglesias, leader of Podemos has asked the left-wing parties to unite together and form a government as he is willing to negotiate terms and conditions with Sanchez.
"An agreement has been reached for a coalition government between Unidas Podemos and the Socialists", Garzon said in a tweet.
The country's current Prime Minister also said: "The Spanish people have spoken and now it is time for its political leaders to implement that will and to overcome the deadlock that Spain has suffered in recent times".
If they succeed, it would be Spain's first coalition government since the country's return to democracy in the late 1970s.
The two leaders have said that the coalition will form a "progressive government made up of progressive forces that are going to work for progress".
The preliminary agreement, which is based on the "loyalty" of both parties to "form a stable government for four years", was signed in the Spanish Congress building in Madrid just two days after Sunday's general election.
When Spain held elections in April, Podemos and the Socialists won more seats than they did on Sunday.
Mr Iglesias said: "As I said on election night after hearing the results, what was a historical opportunity in April has become a historical necessity".
Possible parties to make up the shortfall could be the leftist Mas Pais and the Basque nationalist PNV, speculated El Diario newspaper.
Both the Socialists and Podemos lost seats compared to the April election, with Sanchez's party taking 120 seats, down from 123, while Podemos secured 35, down from 42.
"Given the collapse in support for Ciudadanos, whose share of seats fell dramatically from 57 to 10, we believe the party wants to avoid another election and being seen as blocking the formation of a government", the Economist Intelligence Unit (EIU) said. The two leaders said details would come later and did not comment further.
However, the party would have to actively support the government, rather than abstain, given the likelihood that Catalan pro-independence parties would vote against a Socialist-led government.
Spain's Ibex-35 index slipped by around 0.76 percent at 16:00 GMT, having previously traded 0.3 percent higher on the day.
He then emerged during a TV timeout to test out his skating ability but returned to the room and was declared out for the game. The 22-year-old fell backward just after a faceoff at center ice in the second period and awkwardly twisted the ankle.
Yes, we live in the world of modern technologies where a teenager knows more about technologies than people in mid 30s. When writing about yourself, keep in mind that people might think of different things and have different associations.
We’ve now entered 2020 and the sporting world will certainly have a lot to show us in the upcoming year. The upcoming year will be telling if the boy can turn from a talented prospect to a world-class player.
In a statement, they said: "The integrity of all our platforms was maintained and we are confident that no data breach occurred ". Labour confirmed it had promptly reported the attack to the NCSC, which monitors and works to protect security systems.
However, Gustav Klimt bounced back with a fine performance at the Barronstown Stud Irish European Breeders Fund in June last year. Gustav Klimt moved to the inside down the final furlong and found just enough speed to beat out his compatriot Nebo by a head .
District Judge Richard Leon said in a conference call on Monday that he was "not inclined" to grant Mulvaney's request. They said Kupperman's case is moot since the subpoena directing him to appear has been withdrawn.
On Tuesday, officials from both sides agreed to release the American University of Afghanistan professors American Kevin C. Anas Haqqani was arrested in Bahrain in 2014 and handed over to the Afghan government, which later sentenced him to death.
No timetable has been announced for when the system will launch on the other apps or in other countries. Facebook promises that all of your payment information will be "securely [stored]" and encrypted.
A month later, the National Football League has put together an event to showcase Kaepernick as a free agent. NFL teams were invited Tuesday, via a memo sent by the league office, to attend Saturday's private workout.
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