Faustin Archange Touadera was dismissed as prime minister in a decree read out on public radio and should be replaced by a member of the opposition.

The new prime minister was expected to be appointed later Saturday, according to opposition sources here.

Opposition sources have touted a possible candidate to replace Touadera as lawyer Nicolas Tiangaye, who led the opposition's delegation to the Libreville peace talks. But another opposition lawyer, Henri Pouzere, was also in the running.

The appointment marks the first political step towards resolving a conflict which began on December 10 when Seleka rebels launched an armed offensive, sweeping from the lawless north of Central African Republic southwards before stopping short of the impoverished nation's capital Bangui.

Three days of tough negotiations mediated by the Economic Community of Central African States (ECCAS) whose base is the Gabonese capital Libreville on Friday produced an accord signed by the rebels, the ruling group and the democratic opposition.

As well as calling for an immediate ceasefire, the accord establishes a one-year transition period before general elections are held.

Under the plan, Bozize who has led the country for nearly a decade after taking power in a coup in 2003 and was subsequently reelected twice will serve out his mandate, which ends in 2016.

Friday's agreement also calls for the withdrawal of "all foreign military forces" from the country except for those of FOMAC, a force put in place in 2002 in the chronically unstable country by the ECCAS.

It meets a specific demand from rebels who wanted South African troop reinforcements sent into the country in the last few days to leave.

Central African Republic has been notoriously unstable since its independence from France in 1960.

Rebels accuse Bozize of failing to uphold earlier peace deals and had called for him to face war crimes charges at the International Criminal Court based on reports produced by Amnesty International that lay the blame for kidnappings, summary executions and detentions squarely with Bozize.

Up to 500 soldiers from Gabon, Democratic Republic of Congo, Chad and Cameroon were sent after troubles in 2008. These troops have begun to pull out of the country.

Nearly 600 French troops are stationed in Bangui, officially to ensure the safety of the estimated 1,200 French nationals in the country.