In Macron's hands, the new French prime minister will be appointed within 48 hours

French President Emmanuel Macron will name a new prime minister within 48 hours, the Elysee Palace said, dispelling speculation that new elections could be imminent.

Earlier on Wednesday, outgoing Prime Minister Sebastien Lecornu said the possibility of dissolving parliament was starting to fade after talks with political parties over the past two days, the BBC writes.

"There is a majority in parliament and this is the majority that is inclined to avoid new elections," he said.

On Monday, Lecornu - a close ally of Macron - became the third French prime minister to leave his job in less than a year, pushed out by a hung parliament deeply divided along ideological lines.