Nuri al-Maliki has been given 30 days to form a new government following his reappointment as Iraq's prime minister under what's being described as a power-sharing deal between Shi'ite and Sunni-backed blocs.
The moves to establish a new government come after the inconclusive Iraqi elections last March led to eight months of political deadlock.
The November 11 parliament session in Baghdad saw Kurdish leader Jalal Talabani reelected as Iraqi president, and Talabani asking Maliki, a Shi'ite, to form a government for his second term as prime minister.
The session also included the selection of Osama al-Nujaifi, a minority Sunni from the Sunni-backed Al-Iraqiyah block, as parliament speaker.
However, the session also saw a walkout of the parliament chamber by about 60 Al-Iraqiyah lawmakers, who accused other factions of already not honoring agreements reached as part of the power-sharing arrangement.
U.S. President Barack Obama has welcomed the latest developments, calling them a step toward forming an "inclusive" Iraqi government.
"This agreement marks another milestone in the history of modern Iraq," Obama said at a news conference at the G20 summit in Seoul. "Once again Iraqis are showing their determination to unify Iraq and build its future and that those impulses are far stronger than those who want Iraq to descend into sectarian war and terror."
He said the new government will be "inclusive, representative, and reflect the will of the Iraqi people."
compiled from agency reports