The Bihar cabinet on Saturday decided to recommend the dissolution of the outgoing assembly to Governor Ram Kovind.
The decision was taken at a cabinet meeting chaired by Chief Minister Nitish Kumar, an official said.
Nitish Kumar, who led the Grand Alliance to a victory in the assembly elections, will stake claim to form a new government after a joint meeting of the three allies -- including the JD-U and Congress -- later on Saturday.
Newly-elected legislators of Bihar's ruling Janata Dal-United (JD-U) will elect Nitish Kumar as the leader of the legislature party on Saturday.
Later, he will be elected leader of the legislature party of the Grand Alliance.