DILI, July 6 (Reuters) - A party set up by East Timor's former President Xanana Gusmao has lined up coalition partners to form a government after last week's parliamentary elections, an official from one of the parties said on Friday.

Gusmao's CNRT party, which placed second behind the ruling Fretilin party in the June 30 polls, has set up an alliance with the Association of Timorese Democrats-Social Democratic Party (ASDT-PSD) and the Democratic Party. The coalition has a combined 51 percent of the vote.

"We declare that we have decided to coalesce with CNRT and ASDT/PSD to implement our programmes," Democratic Party president Fernando de Araujo said.

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