Former Bulgarian Education Minister Nikolai Denkov has been given a mandate to form a cabinet within seven days following elections in April, the Sofia Globe reported on its website.
Last week, Bulgaria's two largest political parties, the centre-right GERB and a pro-Western bloc led by Denkov's We Continue To Change party, agreed to form a coalition government with a rotating prime minister in a bid to end more than two years of political deadlock.
The uncertainty has forced EU member Bulgaria to delay its target date for adopting the euro, and it has yet to approve a budget bill for 2023.
In elections on April 2, GERB came first, winning 69 seats in the 240-seat parliament. The bloc led by We Continue To Change won 64.
Ex-European Commissioner Mariya Gabriel, a member of GERB, will take over as premier after nine months, according to the parties' agreement.
(Reporting by Ivana Sekularac; editing by John Stonestreet)