Egypt's supreme military council on Thursday accepted the resignation of Ahmed Shafiq, the interim prime minister, and appointed a former transport minister, Essam Sharaf, to form a new government.
The army statement was carried on the military's Facebook page.
Shafiq had been picked to head the cabinet by former president Hosni Mubarak.
Sharaf stepped down three years ago from the cabinet following a deadly train accident in protest over what he called a lack of vision and resources to improve the country's railway system.
The resignation of the PM was a key demand by protesters. Shafiq was seen by many as a "Mubarak man".