Leftist Czech Prime Minister Jiri Paroubek today said he would resign next week in a move that will bring about the formation of a centre-right cabinet but does not guarantee a stable government.
Mr Paroubek's resignation will automatically trigger the fall of his cabinet.
President Vaclav Klaus is then expected to name rightist Civic Democrat leader Mirek Topolanek as the new prime minister following his party's election victory this month.
However, Mr Topolanek, who has formed a three-party centre-right coalition, has only 100 seats in the 200-seat lower house and will need support from the leftists, who also control 100 seats, to win a parliamentary confidence vote.
Mr Paroubek told reporters today that his resignation did not mean his party would support the coalition and reiterated that its agenda was unacceptable unless modified.
Mr Paroubek has protested against plans to introduce a flat tax on income and services, and against the nomination of one ministerial candidate.
A new cabinet must call a confidence vote within 30 days of being appointed. If it fails, it stays in power until a new administration is formed.
The president can call a new election after three failed attempts to form a cabinet.
Mr Topolanek's coalition is comprised of his Civic Democrats along with the centrist Christian Democrats and the Green Party.
Parliament is expected to meet tomorrow to vote on key positions such as house speaker.
The speaker has the right to pick the prime minister in the third attempt to form a government if the two previous appointees do not win confidence votes.
Mr Paroubek has demanded that his Social Democrats, who placed second in the election, be given the position.
Mr Topolanek said a deal on the speaker could be a part of an overall deal on supporting the cabinet. He expected to be appointed prime minister only after the row over the speaker is resolved, which could take weeks or even months.