Lebanese prime minister-designate Saad Hariri was preparing to announce a new government yesterday after granting concessions to his rivals in the Hezbollah-led opposition on key cabinet posts.

A statement on the new government was expected within 48 hours, officials from both camps said, after the Shia Hezbollah and its allies agreed to Hariri's latest government line-up.

Hezbollah, which heads an alliance of parties supported by Syria and Iran, said in a statement that its leadership, including its head Hassan Nasrallah, met late on Friday and agreed to join the national unity government as proposed by Hariri.

"Those who took part in the meeting agreed to join a national unity government based on the agreements reached during negotiations," the statement said. "We hope that this step will be beneficial for Lebanon and its people.”