Lucas Papademos, a former banker and European Central Bank vice president, has been named prime minister of Greece, the Greek president's office said Thursday.
Papademos was one of several political leaders meeting with Greek President Karolos Papoulia with the goal of forming a new government.
Prime Minister George Papandreou's office had said he would resign Wednesday, but that move was delayed until Thursday.
In a televised address to the nation, Papandreou said that a government of national unity would do whatever was necessary to bring Greece out of its economic crisis.
The country will be stronger and more secure after it implements a controversial European bailout deal that was agreed to last month, he said.
Greece wants the international community to see that it knows how to be united in the face of difficulty, he added. "A new season is opening," he said, adding that he wished the new government success.
Papandreou met Wednesday night with President Papoulias, but did not offer his resignation.
The prime minister said this week he was optimistic about the formation of a new government amid thorny discussions.
-Â CNN's Elinda Labropoulou and Andrew Carey in Athens contributed to this report.FULL STORY