The military seized power in 2014 ushering in Thailand's most autocratic government in a generation.
Former army chief turned Prime Minister Prayut Chan-O-Cha said the coup was necessary to end a decade of political instability and root out corruption.
He has banned political parties from meeting, cracked down on public dissent and granted himself the ability to pass any law in the name of national security.
"The election process will begin next year," Prayut told reporters, saying first the country must hold a cremation for late King Bhumibol Aduyadej, an event likely to take place in late October.
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"In 2018 we will go ahead with holding elections and political parties will be able to hold meetings."
His comments are the first time Prayut has confirmed civilian parties will be able to meet in the run up to elections.
However there are lingering questions over how much power any future civilian government will have under the new constitution -- the country's 20th since 1932.
The constitutional court, a frequent thorn in the side of elected governments, will be strengthened, making it easier to impeach a civilian leader.
The military has also said any future government must adhere to a "legally binding 20-year-plan" for the country that is still in the works.
The junta is also drawing up a series of yet to be published laws that will define who can form a political party.
Critics say the military is far from being a neutral player, deeply hostile to ousted premiers Thaksin and Yingluck Shinawatra, whose parties have won every poll since 2001.
Their billionaire clan is popular among Thailand's rural and urban poor and they have urged a return to elections.