Micheál Martin has been elected Taoiseach by the Dáil after the government parties reached a deal with the Opposition over speaking rights.
The vote was 95 to 76.
The election of Martin to the top office in Irish politics - and for the second time in the Cork native's career - follows chaos on Wednesday amid the suspension of the Dáil sitting in a row over allotted opposition speaking time.
Outgoing Taoiseach Simon Harris paid tribute to Martin and his “trademark way” of doing business, the Irish Times reported.
To some laughter, the Fine Gael leader said he had noticed that Mr. Martin had been “somewhat nurturing a mild desire to be Taoiseach again."
He said his party was looking forward to playing “our part in the new government in a spirt of partnership, mutual respect and shared objectives."
The new government is comprised of Fianna Fáil, led by Mr. Martin, Fine Gael and a group of Independent TDs.
Sinn Féin leader Mary Lou McDonald said “today will not be our day, but our day will come," the Times report stated.
MacDonald, whose party is the largest on the opposition benches, defended Sinn Féin's actions on Wednesday which in part led to the suspension of the Dáil sitting and delayed by 24 hours the vote for the new taoiseach.
She said that her party had pushed back "against a brazen attempt to stymie, to silence and to sabotage the Opposition.”
