The first, and some would say, most closely watched contest in the race for the US Republican presidential nomination has ended without a runaway favourite.

Former Massachusetts governor Mitt Romney finished first in the Iowa caucus, winning by only eight votes.

Many political analysts expected Romney to win the Iowa vote, so the big news is that former Pennsylvania senator Rick Santorum virtually split the vote, finishing only eight behind.

“Game on,” Santorum said, strolling up to the microphone after his surprisingly strong second place finish.

Texas Republican Ron Paul finished third with 21 per cent of the vote, leaving Newt Gingrich in fourth place with 13 pet cent.

Texas Governor Rick Perry returned to his home state, saying he needed to assess his next steps.

“With a little prayer and reflection, I’m going to decide the best path forward,” Perry said.

The next stop for the Republican candidates is New Hampshire.