Davutoglu was approved in a special AKP congress at an Ankara sports arena on Wednesday evening. He is due to take over on Thursday and form a new government.

He will replace outgoing Prime Minister Recep Tayyip Erdogan. Davutoglu was personally handpicked by Erdogan, who will be sworn in as president on Thursday.

Erdogan won Turkey's first direct presidential election with more than 51 percent of the vote. He has repeatedly been accused of dictatorship and intolerance by his opponents over the past couple of years.

Davutoglu has said that there would be no conflict with Erdogan as president and the two would build a new Turkey "hand in hand."

"There will be no conflict between the president and the prime minister, who are both elected by popular vote,” Davutoglu said, adding, "We will build the new Turkey hand in hand, shoulder to shoulder."

Erdogan will replace Abdullah Gul with whom he founded the AKP. The presidential post is ceremonial in Turkey, but Erdogan has promised to use his dormant powers.

Media reports have tipped the head of Turkey's intelligence service, Hakan Fidan, as a possible new foreign minister.

HH/HH