Senior opposition figure Mohammed Basindwa has been named as Yemen’s interim prime minister ahead of planned elections in February, according to state TV.
The appointment was made by the country’s Vice-President, Abdrabbuh Mansour Haddi.
President Ali Abdullah Saleh has handed over powers to Haddi under a deal brokered by regional Gulf states and signed last Wednesday.
On Sunday Saleh told senior members of his party that his departure would restore peace to his impoverished country. He also said protests should stop to create the right atmosphere to go ahead and implement the Gulf initiative.
But the deal seems to have failed to appease all protesters, with many angry that the agreement will guarantee immunity to Saleh and his family.
Other demonstrators, however, say they will put their faith in the elections.