French President Emmanuel Macron will name a new prime minister within 48 hours, the Elysee Palace has said, fending off speculation that fresh elections could be imminent, BBC reported.

Earlier on Wednesday, outgoing Prime Minister Sébastien Lecornu said the possibility of dissolving parliament was beginning to fade following talks with political parties over the last two days.

"There is a majority in parliament and that is the majority that is keen to avoid fresh elections," he said.

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