Baghdad, Iraq (BBN)-Iraq's president has asked deputy parliament speaker Haider al-Abadi to form a new government, officials say.
Abadi has been nominated as prime minister by Shia parties, instead of the incumbent Nouri Maliki, reports BBC.
But Maliki has made it clear he wants to stand for a third term, and pro-Maliki security forces took key sites in Baghdad overnight.
Meanwhile the jihadist insurgency in the north of Iraq continues to cause international concern.
The Kurds there have appealed for international military aid to help defeat militants from the Islamic State (IS) group, who have recently made substantial gains, forcing tens of thousands of people from religious minorities to flee their homes.
President Fouad Massoum said in a TV address that he hoped Mr Abadi would succeed in forming a government that would "protect the Iraqi people".
Analysts say the announcement is a public snub for Maliki.
Earlier on Monday, US Secretary of State John Kerry called on Maliki not to increase tensions, and warned against the use of force by political factions.
BBN/ANS-11Aug14-8:00pm (BST)