One of two rival Libyan governments says it is disbanding to make way for the new U.N.-brokered unity government.
The Tripoli-based Islamist National Salvation Government issued a statement Tuesday saying it "put the interests of the nation above everything else and stress that the bloodshed stop and the nation be saved from division and fragmentation."
The statement said its prime minister, parliament and ministry chiefs are all stepping down.
Another Libyan administration in the eastern city of Tobruk is, so far, refusing to recognize the unity government.
The new prime minister, Fayez al-Serraj, arrived in Tripoli last week and set up shop at a naval base.
The United States and the West hope the new government can start to assert its authority across all of Libya, bring the country together and successfully enter the fight against Islamic State.
Libya has been in chaos since longtime dictator Moammar Gadhafi was toppled and killed in 2011.
Rival armed factions have spent the last five years trying to grab power and take control of Libya's oil industry.
The turmoil has opened the door for extremists, such as Islamic State, to grab territory. The fight for oil fields and refineries has destroyed the Libyan economy.