First announced over a fortnight ago, Gusmão was rumoured at the head of the new coalition after weeks of political chaos following the blocking of the general state budget on 17 January.

While Gusmão had led the current ruling coalition’s largest party, the National Congress for Timorese Reconstruction, his party abstained from voting on the budget bill prompting Prime Minister Ruak to announce that his government “no longer exists.”

The alternative government which is yet to be given a name includes CNRT as majority party (21 seats), the Democratic Party (five seats), KHUNTO (five) and three smaller parties, the United Party for Development and Democracy, Frente Mudanca and the Timorese Democratic Union.

Assuming the new coalition is installed by President Lu Olo, the alliance will become the country’s ninth government since the restoration of independence in May 2002.

Gusmão, 73, is a former Prime Minister and President of Timor-Leste.