The Fedeal Government has welcomed East Timor's decision to appoint a new prime minister, saying the country appears to be sorting out its problems.
Nobel prize winner Jose Ramos Horta was today named as East Timor's new prime minister.
President Xanana Gusmao made the announcement at a press briefing today, ending weeks of political uncertainty in the nation.
"The question of who is Prime Minister is a matter for East Timor, but we welcome the fact that the political leadership in East Timor are starting to sort their problems out," a spokesman for Foreign Minister Alexander Downer said.
"Jose Ramos Horta is a good personal friend and we wish him well."
The federal opposition has also called the decision a positive step.
"This is a positive step forward for East Timor because Mr Horta has the capacity to assist President Gusmao in uniting the country," opposition foreign affairs spokesman Kevin Rudd said.
"Mr Horta is an old friend of Australia with strong friendships on both sides of Australian politics.
"[But] neither the security nor the humanitarian crisis is over in East Timor and Australia will need [to] remain active on both fronts. This needs to be underpinned by a fresh Security Council resolution."