"After the vote of no confidence (that centre-right ex-premier Taavi Roivas faced), I spoke with the leaders of all the political parties represented in parliament, and I am convinced that Juri Ratas will be capable of forming a strong and energetic government," Kaljulaid told ERR public radio.

After meeting the president, Ratas told local media he would accept the mission entrusted to him and that he would "form a government that will be at the service of Estonia."

Under the constitution, Ratas has two weeks to form a government. However, he has announced he aims to appoint a cabinet as early as next week.

Ratas, who heads the Centre Party, is popular among Estonia's large Russian-speaking minority.

The three parties agreed to share power by taking five ministerial portfolios each, to lead the NATO and eurozone member state.

Ratas has previously announced that his government would lean towards the West.

However, the three main parties have agreed not to support the EU's migrant quota plan, pledging to focus on "ending economic stagnation."