UNITED NATIONS - UN Secretary-General Ban Ki-moon on Tuesday welcomed the announcement that a new unity government has been nominated in Libya under a UN-backed plan.

Earlier on Tuesday, Libya's Presidential Council announced the formation of the Government of National Accord of Libya.

The new government, headed by Fayez Al-Serraj, comprises 32 ministers and four deputies to the prime minister. It will assume its powers after the House of Representatives' approval.

"This marks an important step towards the implementation of the Libya Political Agreement and the resolution of the crisis in the country," said a statement by Ban's spokesman.

Ban said he looks forward to the endorsement of the new government so that it can address the challenges facing the country, according to the statement.

"The Secretary-General reiterates his call on all Libyans to support the implementation of the Libyan Political Agreement so that Libya can continue its democratic transition," it said.

Libya has been suffering severe political crises with two rival parliaments and governments, amid escalating violence and growing militant extremism.

The presidential council was formed under a UN-backed agreement signed by Libya's rival political parties on Dec 17 in Morocco.

The agreement said that the council must name the government within 30 days after its signing. However, the council on Sunday has postponed the announcement of the government in order to complete "further arrangements."