"The cabinet at an extraordinary session approved a draft decree setting July 25 as the date for parliamentary elections," State Minister for Cabinet Affairs Sheikh Mohammad Abdullah al-Sabah told the official KUNA news agency on Thursday.
The decree will be issued later by Emir Sheikh Sabah al-Ahmad al-Sabah.
The decision came after the constitutional court on Sunday scrapped the 50-seat parliament elected on December 1 amid a total boycott by the opposition in protest against an amendment to the electoral law that was confirmed by the court, whose rulings are final.
The ruling paved the way for Kuwait's second parliamentary poll in eight months, and third since February 2012.
The oil-rich Persian Gulf Arab state has been rocked by a series of political crises since early 2006 between lawmakers and the government.
Kuwait's parliament gives its people greater say than in other tightly-controlled Persian Gulf Arab monarchies, although the emir still has the final word in state matters, with members of his ruling Al-Sabah family occupying top posts.