Libya’s eastern-based parliament has said it wants the government it appointed under Fathi Bashagha to be based, for now, in the coastal city of Sirte.
The announcement is the clearest acknowledgement yet that Mr Bashagha cannot yet take over in the capital, Tripoli.
Libya has been split between two opposing cabinets after parliament in the east elected Mr Bashagha as the new prime minister in February.
The country’s incumbent Prime Minister Abdulhamid Dbeibah, who is based in the capital, has refused to hand over power without an election.
Both men are supported by armed factions and it is feared hostilities between the two could ignite a new round of conflict.
Libya has experienced repeated violence ever since long-time leader Muammar Gaddafi was removed from power in 2011.