Cambodia's Foreign Minister Hor Namhong cracked open the champagne to celebrate when news filtered through of a landslide election win by Thailand's opposition party, hoping a border dispute that brought the two neighbours to the brink of war this year can now be put to rest.

Relations were severely strained under Thailand's defeated Democrat Party-led government, but Cambodia seems confident the historic foes can start anew with Yingluck Shinawatra's Puea Thai Party at the helm in Bangkok.

"We cannot hide that we are happy with the victory of the Puea Thai Party. We hope this new government will solve the problems with Cambodia more positively and more peacefully," Cambodia's Foreign Minister Hor Namhong said after making a toast with a glass of champagne with diplomats. That's what we want, a peaceful solution."

Clashes flared between Thai and Cambodian troops in February and April near disputed ancient Hindu temples on two parts of the border, killing a total of 18 people and forcing the relocation of tens of thousands of villagers on both sides.

The clashes were accompanied by verbal tirades and personal insults traded by Cambodian Prime Minister Hun Sen and his Thai counterpart, Abhisit Vejjajiva.

The biggest bone of contention is the 11th Century Preah Vihear temple which an international court awarded to Cambodia in 1962 after decades of squabbles over jurisdiction.

Cambodia wants to list Preah Vihear as a Unesco World Heritage Site, but Thailand has sought to stall the process, insisting a 4.6 sq km area of scrub around the ruins must first be demarcated.

Thailand last week threatened to withdraw from the World Heritage Committee in protest at what it said was Cambodia's uncompromising stance. What riled Abhisit's government the most was Hun Sen's decision to appoint ousted prime minister Thaksin Shinawatra - Ms Yingluck's self-exiled brother - a special economic adviser rather than extradite him to Thailand to serve a two-year prison term for graft.

Thaksin later gave up the Cambodian post.

Analysts in Cambodia believe the chances of peace between Cambodia and Thailand would be higher with Yingluck in charge and Abhisit's Democrat Party out of the picture.

"She will be playing a role as the mother and she will put out all the flames," said Sok Touch, rector of Phnom Penh's Khemarak University.

Cambodian tycoon Senator Mong Reththy, who has several joint ventures with Thai investors in palm oil and port businesses, said he was confident a new Thai government would be a boost for trade and investment.

"When I heard this news, I was very happy. Everybody knows Abhisit's government regarded Cambodia as the enemy, unlike any other before," Mong Reththy said.

"Now, Thai investments will flow into Cambodia."