Bolivia Congress has excluded Evo Morales who claims to have been a victim of a coup after losing the support of the security forces.
The caretaker government met with protesters to end weeks of unrest.
The move seeks to quell weeks of unrest that left dozens of people dead amid major political crisis.
At least 32 people have been killed in violence that erupted after a disputed election on October 20, with protesters‘ blockades causing severe fuel and food shortages in La Paz and other cities.
Both chambers of Bolivia’s Congress have unanimously approved a bill that annuls the result of the country’s presidential vote last month and allows for new elections to be held without former president Evo Morales.
The measure approved forbids candidates from running if they have served in the last two terms, with politicians also agreeing to appoint a new electoral board.
Interim President Jeanine Anez, an opponent of Morales, is expected to sign the bill into law at 14:00 GMT on Sunday.
“I want to thank our parliamentarians for having understood and listened to the demands of the Bolivian people,” Anez wrote on Twitter.