His government is credited with holding successful elections following the announcement of the new constitution in 2015.
Nepal Prime Minister Sher Bahadur Deuba has resigned to pave the way for the formation of new government as per the people's mandate in recent elections.
A Standing Committee (SC) of the party held in Lalitpur named Oli as the prime ministerial candidate as he is also the UML's Parliamentary Party leader, Surendra Pandey was quoted as saying by The Kathmandu Post.
Earlier, former prime minister and Nepali Congress president Sher Bahadur Deuba had addressed the nation and submitted his resignation to the president. K.P. Oli will replace him as the 41st Prime Minister of the Himalayan nation later in the day.
CPN-UML chairperson K P Sharma Oli became Prime Minister for the second time over two months after his Left alliance routed the ruling Nepali Congress in the country's historic parliamentary and local polls.
The largest alliance in Parliament, the left alliance, formally extended support to KP Sharma Oli for premiership and presented the same claim before President Bidhya Devi Bhandari at 9:00 AM on Thursday. It was hoped that the new government that gets elected will be stable and be the first to complete a full five-year term.
The total strength of the CPN-UML and CPN-Maoist Centre was 174, sufficient to form a majority government at the Centre.
This is unedited, unformatted feed from the Press Trust of India wire.