Coalition talks between Turkey's ruling Justice and Development Party (AKP) and the main opposition Republican People's Party (CHP) ended negatively on Aug. 13, a senior CHP official told Reuters, potentially setting the stage for a snap election later this year.

"The outcome is negative," the official said by phone, after a 1.5-hour meeting in Ankara between Prime Minister Ahmet Davutoğlu and CHP leader Kemal Kılıçdaroğlu, which followed weeks of talks between their two parties.

Meanwhile, Şero, the CHP's mascot cat, confirmed the news on his popular Twitter account. "We are launching our election campaign," he tweeted, sharing the CHP's campaign hashtags.

The official gave no further details. Davutoğlu and the CHP were expected to make separate press statements later.

The chances of the AKP forming a coalition with the Nationalist Movement Party (MHP) are "very slim", a senior AKP official told Reuters, with early elections in November now looking highly likely.

"The probability of a coalition with MHP is very low, chances of an election in November are very high at the moment," the official said by telephone.

Meanwhile, Şero, the CHP's mascot cat, confirmed the news on his popular Twitter account. "We are launching our election campaign," he tweeted, sharing the CHP's campaign hashtags.

The AKP is now expected to hold talks with the nationalist opposition MHP, which has hinted it could support a minority AKP government in the short term if it leads to a new election.

The lira currency weakened to a record low of 2.81 to the dollar on the news. Many investors had hoped for a grand coalition between the AKP and the pro-business, centre-left CHP, and fear another election will prolong uncertainty.

The AKP failed to win a parliamentary majority in an election on June 7, leaving it unable to govern alone for the first time since it came to power in 2002.