Alergia's parliament appointed the chairman of the upper house, Abdelkader Bensalah, as the interim president on Monday, state TV reported.
Mr Bensalah will lead the country until new elections are held, according to the North African country's constitution. His election as interim president follows constitutional rules but goes against the demands of demonstrators, who have pushed for him and other top politicians to stand down.
"We must work to allow the Algerian people elect their president as soon as possible," Mr Bensalah told the parliament.
"I want to work towards fulfilling the interests of the people," he said on taking up the 90-day interim presidency.
"It's a great responsibility that the constitution demands of me."
Under Algeria's constitution, Mr Bensalah will lead the country for the next 90 days.
He is replacing Abdelaziz Bouteflika, who resigned on April 2 after weeks of protests calling for him to step down.
Protests erupted in the North African country after Mr Bouteflika announced he was running for a fifth term in office. The president had rarely been seen in public since he suffered a stroke in 2013.
Earlier this month Mr Bouteflika resigned, but the protests have not abated. Instead, there have been calls for a complete overhaul of the political system, which they say is too close to big business and military elite.
Opposition parties refused to back Mr Bensalah's election and boycotted the session, as hundreds of students protested against him in Algiers.
"Resign Bensalah!" they chanted outside the main post office, which has become the focal point of weeks of mass protests in the capital.
Ahead of the parliamentary session, an editorial in pro-government daily El Moudjahid on Tuesday suggested Mr Bensalah should step aside from the presidential post.
He is not only "not tolerated by the citizen movement, which demands his immediate departure, but also by the opposition" and various political groups in both houses of parliament, the newspaper said.
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Suggested picnic spots
Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.