The plan, which will see 18 ministers run the country, has been sent to Libya's internationally-recognized parliament for approval. But two presidential council members refused to sign the text.

The new proposals were agreed by most delegates from rival Libyan factions on Sunday. They met in the Moroccan city of Skhirat in an attempt to end a political vacuum that has engulfed the country since 2011.

The latest plan followed the rejection of a previous Cabinet proposal by the eastern parliament two weeks ago, who said it was too large.

The proposals will see 13 ministers and five ministers of state take office. While most of the names on Sunday's list were different from last month's proposal, the post of defense minister, Mahdi al-Barghathi, was unchanged.

Prime Minister-designate Fayez Seraj, who also heads the Presidential Council, told reporters on Sunday that the latest appointments took into account "experience, competence, geographical distribution, the political spectrum and the components of Libyan society."

The plan will need approval from the internationally-recognized parliament based in eastern Libya, But doubts remain over the rival Islamist-dominated parliament based in Tripoli.

It's hoped the forming of a unity government will prevent "Islamic State" (IS) militants from taking advantage of the political crisis, having carried out several attacks over the past year.

Hopes for future

United Nations envoy to Libya, Martin Kobler, tweeted his congratulations. He called Sunday's announcement "a unique peace opportunity that must not be missed."