Libya has agreed to form a new national government headed by Prime Minister Fayez el-Sarraj after months of tortuous negotiations.

Libya has agreed to form a new national government headed by Prime Minister Fayez el-Sarraj after months of tortuous negotiations, United Nations envoy Bernardino Leon said Friday.

"After a year of work on this process, after working with more than 150 Libyan personalities from all the regions, finally the moment has come in which we can propose a national unity government," Leon told a news conference in Morocco.

Libya, which plunged into chaos after the fall of Moammar Gaddafi in 2011, has had two rival parliaments vying for power as well as several groups battling for control of the country's vast resource wealth.

The internationally recognized government of Abdullah al-Thani has been working out of the small eastern port of Tobruk near the Egyptian border since a militia alliance, including Islamists, captured Tripoli last year.

Previous deals to ensure a ceasefire and restore stability to the war-torn country have fallen apart.

But Leon said he believed the make-up of the new government, which would include deputy prime ministers Ahmad Meitig, Fathi el-Mejbri and Mussa el-Kouni, would succeed.

"Far too many Libyans have lost their lives and so many mothers have suffered. Today, nearly 2.4 million Libyans need humanitarian aid," he said.

"We believe (this government) can succeed. The Libyans must seize this historic opportunity to save Libya."