President Jalal Talabani will officially name Nuri al-Maliki to a second term as Iraq's premier on Thrusday, giving him 30 days to form a cabinet after an eight-month impasse following elections.
The move, delayed to give Mr Maliki as much time as possible to negotiate with his rivals, signals an end to the protracted political battle between Iraq's factions.
The tussle has seen Iraq shatter the world record for the longest period without a new government after polls.
Mr Talabani is expected to name Mr Maliki, who first took the top job in 2006 at a time of brutal sectarian conflict, as Prime Minister-designate in a ceremony at the President's office, a Parliamentary official said, on condition of anonymity.
The country's political blocs have all formed committees to negotiate their share of ministries and cabinet positions, which will be apportioned via a points-based system.
Each bloc will be assigned points based on its success in the March 7 elections, and each ministry and government post will cost a set number of points depending on its importance.
Under Iraq's constitution, Mr Talabani was allowed 15 days to appoint a prime minister following his re-election by MPs on November 11.
He had earlier been expected to name Mr Maliki as premier last Sunday, immediately after the Muslim holiday of Eid al-Adha, but delayed the decision to give the incumbent more time to negotiate ministerial posts.
The re-selection of Mr Talabani, a Kurd, and Mr Maliki, a Shiite, to their posts and the naming of a Sunni Arab as speaker of parliament came after a power-sharing pact was agreed on November 10.
The accord also established a new statutory body to oversee security as a sop to ex-premier Iyad Allawi, who had held out for months to regain the top job after his Iraqiya bloc narrowly won the most seats in the March 7 poll.