A caretaker government headed by the chief judge of Greece's top administrative court will lead the country to fresh elections on June 17.
A meeting of political party leaders convened by President Karolos Papoulias on Wednesday agreed on the poll date, and the nomination of Council of State President Panagiotis Pikrammenos as Prime Minister of the interim government, Greek media reported.
A caretaker government does not have the powers to take any internationally binding decisions.
Greece was left with no option other than calling fresh elections after the second round of talks between political parties to form a coalition government failed to reach agreement on Tuesday. No parties were able to win clear majority in the May 6 parliamentary elections.
Recent polls suggest a new election could deliver an equally fragmented Parliament, with left-wing coalition Syriza, which opposes the government's austerity measures for securing a bailout, becoming the largest party.
Syriza wants to renegotiate the bailout package, a demand already rejected by German Finance Minister Wolfgang Schaeuble. He repeated his stance on Wednesday by saying that "this is an aid program that was prepared down to the last detail," and no changes can be discussed.
The election date is beyond the deadline for a new government to come to power if the debt-ridden country is to get the next installment of bailout fund from the European Union and the International Monetary Fund.
In such a scenario, chances are that Greece will fail to receive the loan amount, as the international lenders have warned that they will not discuss further aid disbursements until a new government is formed.
Greece faces the risk of exiting the eurozone if the country elects an anti-bailout government this time.
But after talks in Berlin with German Chancellor Angela Merkel following his inauguration as French president on Tuesday, Francois Hollande stressed the need for Greece to remain in the euro.
On Wednesday, Spanish Prime Minister Mariano Rajoy warned that a Greek exit would be "an enormous mistake." Spain will conform to its commitments to reduce the public deficit, he told reporters.
But BBC quoted Richard Corbett, a senior adviser to European Council President Herman Van Rompuy, as saying that the European Union is "not planning for a Greek exit," which would neither help Greece, nor the rest of the European bloc.
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