Iceland's right-wing coalition government on Wednesday named Agriculture Minister Sigurdur Ingi Johanssonn as new prime minister, a day after his predecessor was forced to step down over his implication in the Panama Papers scandal.

The Progressive Party and the Independence Party agreed after talks late Wednesday to hand the prime minister post to Johannssonn, 53, replacing Sigmundur David Gunnlaugsson, 41, Progressive Party MP Hoskuldur Thorhallsson told reporters.