Yemen's vice president named Sunday opposition leader Mohammed Basindwa as the country's new interim prime minister, the Saba state news agency reported, under a deal aimed at ending months of protests which have rocked the country.

Vice President Abd-Rabbu Mansour Hadi named Basindwa in a decree carried by the agency. This followed a decision Friday by opposition parties to nominate Basindwa, the head of an alliance that led months of protests against President Ali Abdullah Saleh, to form a new government.

The new government is being created under the deal signed in Riyadh last Wednesday when Saleh transferred his powers to his deputy to resolve the crisis resulting from months of pro-democracy demonstrations.

(Reportin by Sami Aboudi in Dubai, writing by David Stamp)