Hazem al-Beblawi is expected to offer posts to Mohamed Morsi’s Islamist Muslim Brotherhood, although it has refused to co-operate with what it says it a coup.
The main liberal coalition has said it will not back the plan to hold fresh elections unless amendments are made.
The US said it was “cautiously encouraged” by the move towards reform.
The timetable for new elections was announced by Interim President Adly Mansour on Monday evening, hours after at least 51 people – mostly Muslim Brotherhood members – were killed outside the military barracks in Cairo where Mohamed Morsi’s supporters believe he is in detention.
The decree laid out plans to set up a panel to amend the suspended Islamist-drafted constitution within 15 days.
The changes would then be put to a referendum – to be organized within four months – which would pave the way for parliamentary elections, possibly in early 2014.
Once the new parliament convenes, elections would be called to appoint a new president.
Late on Tuesday Ahmed el-Musalamani, spokesman for the interim president, said talks on a new cabinet would start on Wednesday.
He said posts would be offered to the Brotherhood’s political wing the Freedom and Justice Party (FJP) – which won Egypt’s first free elections in 2012 – and to the ultraconservative Salafist Nour party.
However the proposals were widely rejected by both Islamist and liberal parties.
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