Libya's rival factions agreed to form a national unity government on Tuesday in a bid to bring an end to years of chaos and bloodshed in the North African country.

The Unity Presidential Council has announced a 32-member cabinet under businessman Fayez al-Sarraj after negotiating a UN-brokered deal, reported PTI.

However, the fate of the government is unclear as the cabinet consists of ministers from opposing administrations. It was formed after the two rival parliaments — the internationally recognised government in East Libya and the other in capital Tripoli led by the militia — agreed to form a government based on UN guidance.

On 17 December, the power-sharing deal was signed by 80 of 188 lawmakers from Libya's internationally recognised parliament and 50 of 136 members of the Tripoli-based General National Congress.

All major world powers have urged all the parties to accept the power-sharing agreement over fears of Islamist extremists building a new stronghold to wage war across the Mediterranean to Europe.