Norbert Hofer would have been the first president in Europe to be a member of a far-right party since World War II.
President-elect Alexander Van Der Bellen is preparing to take office in Austria after victory in Sunday's election against far-right candidate Norbert Hofer.
Bellen said his win sends an important message to the rest of Europe.
"I think it's not an exaggeration to say that today we see a red and white flag, the flag of Austria, a red and white signal of hope and change, a signal goes from Austria to all the capitals of the European Union."
But political analysts say the result does not mean the end for the far right in Austrian politics.
Jon Brain reports from Vienna.