The SNP will form a minority administration — without support from Labour — who have made claims of a ‘political stitch up’.
The Conservatives won ten seats, with the SNP on nine, Labour on five along with four independents.
It was expected that the SNP, Labour and Independent groups would maintain the same working relationship they have for the last five years.
But the two parties have failed to come to an agreement and, with the Conservatives accepting that they would not have the numbers required, the SNP have opted to form a minority administration operating on ‘collaboration and consensus’ basis.
Labour, who stated they would not form a coalition, had sought the civic role of Provost and scrutiny and panel positions.
It had been suggested that Labour had also sought the creation of a co-leader position and the possible removal of senior management, including the chief executive.
Labour group leader Brian McGinley denied any discussions took place around the ‘co-leader’ position, but admitted that a review of senior management was discussed but not as a ‘pre-condition’ to any agreement.
SNP leader councillor Peter Henderson also denied that any demand for a co-leader position had been made.
Following the meeting on Sunday, Cllr McGinley had tweeted: “Here’s a shocker. SNP in South Ayrshire preparing to do a 'Green Light' deal with the Tories. I wonder what Nicola has to say about that?”.
He later said that Labour had initial discussions and had ‘offered to take non political, civic positions to help the running of the council as well as scrutiny and external appointments to represent the best interests of the council’.
He also accused the Conservatives of giving the SNP the ‘green light to do as they wish’.
“After only three days, both are breaking their commitments to the people,” he added.
“Labour have been clear all along, we will not support either a Tory or SNP administration, we will put people first and judge every single issue on its own merits.
“We will offer to take positions that help to run the council and will not be part of any political party stitch up.”
Cllr Henderson was also adamant that no deals had been agreed and has set out plans to run as a minority administration.
He said: “After negotiations and talks with political groups and independents. The SNP will lead a minority administration in South Ayrshire.
“No formal coalition agreements have been made. It is thought following the election results that collaboration and consensus working would be the best way forward.
“The Conservative group will be the opposition.
“I understand individual feelings but also have in mind that the political parties have made clear there positions on coalitions etc.”
Official ratification of the new administration will be made at the first council meeting next Thursday, May 19.
Conservative leader Martin Dowey also dismissed claims that a ‘deal’ was being done with the SNP after a poor election for the party.
He said that he had simply acknowledged that they could not secure the numbers to form an administration, opening the way for the next biggest group.
He said: “What is most important now is to avoid the toxicity of the last term and ensure the council is stable.”
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