Libyan parliament and the General National Congress (GNC) have signed a declaration of principles in an attempt to end the armed conflict in the North African country.
Media reports said on Sunday that under the deal, a 10-member committee would be formed to appoint an interim president and his deputy.
No more details have so far been released on the agreement.
Libya has been struggling with instability since 2011, when the country’s former dictator, Muammar Gaddafi, was overthrown and armed groups as well as regional factions engaged in a conflict.
The capital, Tripoli, is controlled by a political faction allied to powerful armed forces based in the city of Misrata. The faction has reinstated the previous parliament in the capital.
The internationally-recognized government of Prime Minister Abdullah al-Thinni is based in the eastern city of Bayda, with its elected House of Representatives in Tobruk.
The United Nations had previously proposed the formation of a national unity government in an effort to end the conflict in the country. Under the proposal, a nine-member presidential council, including a prime minister, five deputy prime ministers and three senior ministers, will govern Libya.
UN Special Envoy for Libya Bernardino Leon had earlier expressed hope that an agreement between the Tobruk-based parliament and rival factions would be clinched in the near future.