While the parties are closely aligned they differ on issues such as pensions and the details of Britain's exit from the European Union.
In November 2015, the Northern Ireland Assembly voted in favour of marriage equality, but the DUP tabled a controversial "petition of concern" to block the motion from passing.
Downing St. said the Cabinet will discuss the agreement on Monday.
Natural bedfellows in a Conservative-led coalition, perhaps, but with their staunch commitment to an open border with neighboring southern Ireland, they could yet prove a decisive and outsized force in Brexit negotiations - and by virtue, the success or failure of the Conservative Party's key manifesto pledge.
British Prime Minister Theresa May was forced to relinquish her two closest aides on Saturday as she struggled to reassert her authority following a crushing electoral setback. The Prime Minister can authorise the civil service to provide support in negotiations, as they did in 2010.
But after seeing her Commons majority wiped out on a night of humiliation for the Tories, she was left with limited room for manoeuvre when it came to re-shaping her top team. The main opposition Labour Party surpassed expectations by winning 262.
A few hours after the two stepped down, May named former Housing Minister Gavin Barwell, who lost his seat in Thursday's election, as her new chief of staff.
"The irony of this is that Theresa May is calling this a certainty government and talking about how it's delivering certainty", said Brian Klaas, a fellow in comparative politics at the London School of Economics.
May wanted to win explicit backing for her stance on Brexit, which involves leaving the EU's single market and imposing restrictions on immigration while trying to negotiate free trade deal with the bloc.
Former SNP first minister Alex Salmond quotes a Jacobite song after losing his Gordon seat to the Conservatives: "You've not seen the last of my bonnet and me". "May sought a mandate".
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The official was not authorized to publicly discuss private thinking and spoke on the condition of anonymity. "Very bad for U.S. The White House doesn't want to hear any more questions about the Russian Federation investigation.
"We will of course act in the in the national interest and do what is right for the whole of the United Kingdom", she said.
Britain and the EU are at odds over nearly every detail of the Brexit process, but European officials had hoped a strong win for May would make it easier to override domestic opposition and compromise.
Earlier, Mrs May announced that she meant to carry on in No 10 at the head of a minority government with the support of the Democratic Unionists (DUP) after falling eight seats short of an overall majority.
The result was a personal humiliation for Mrs May who called the election three years before she had to to bolster her position in Parliament as she embarked on the negotiations on Britain's withdrawal from the EU.
"I could not care less what people get up to in terms of their sexuality".
She said that the poor showing meant that she would need to "reflect" on voters' appetite for a new referendum. In the other four instances minority governments were able to survive as a result of agreements with other parties.
The move was denounced by Labour leader Jeremy Corbyn, who called on her to stand aside and allow him to form an administration, declaring: "We are ready to serve".
Newspaper headlines saw her as just clinging on. "May stares into the abyss", wrote The Times, while Conservative-supporting The Sun tabloid said succinctly: "She's had her chips".
But she seems secure for the immediate future, because senior Conservatives don't want to plunge the party into a damaging leadership contest.
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