The announcement comes after the Czech Republic’s president asked Babiš to form a new government after his party's victory in last month’s parliamentary elections.
Czech billionaire and Prime Minister-designate Andrej Babiš signed a coalition deal with right-wing allies on Monday, bringing him a step closer to taking the seat once again.
His ANO (Yes) party has teamed up with the climate change sceptics, the Motorists party, and the SPD (Freedom and Direct Democracy), which is against the EU and NATO.
He said he aims to form a government by mid-December.
The announcement comes after the Czech Republic's president asked Babiš to form a new government after his party's victory in last month’s parliamentary elections.
President Petr Pavel made the announcement after meeting Babiš, whose ANO party staged a political comeback in the 3-4 October ballot.
Babiš promised to present the coalition agreement and its priorities later this week, Pavel said in a statement.
The parties have agreed to create a 16-member cabinet with ANO holding eight posts plus the prime minister. The Motorists would have four and the SPD three.
Babiš and ANO won 34.51% of the vote, soundly beating the pro-Western conservative coalition led by outgoing Prime Minister Petr Fiala.
The new three-party partnership would hold 108 seats in the 200-seat lower house of Parliament, relegating Fiala to the opposition.
Babiš's return, backed by fringe eurosceptic parties, could weaken support for Ukraine's defence against Russia's full-scale invasion, and he has already announced he would end any aid to Kyiv coming from Prague.
Babiš, who is 71, has already served as prime minister of the Czech Republic from 2017 to 2021.