ReutersCopyright: Reuters

Prime Minister Abiy Ahmed says the new party would help reduce ethnic divisions in EthiopiaImage caption: Prime Minister Abiy Ahmed says the new party would help reduce ethnic divisions in Ethiopia

Politicians from Ethiopia's governing Ethiopian People’s Revolutionary Democratic Front coalition have approved the idea of forming a new political party - a plan that has been backed by Prime Minister Abiy Ahmed.

Mr Abiy said the new Ethiopian Prosperity Party would help break down ethnic divisions and unite the country.

He wants it to become the national driving force to replace the three-decade old ethnically based coalition.

But one coalition member, the Tigray People's Liberation Front, which dominated the government before Mr Abiy came to power, has refused to join the new party, fearing its influence will be further eroded.

In a tweet the prime minister called the merger a "crucial step in harnessing our energy to work toward a shared vision".

Abiy Ahmed Ali?@AbiyAhmedAli

The unanimous decision passed today to merge the Party is a crucial step in harnessing our energy to work toward a shared vision. Prosperity Party is committed to strengthening & applying a true Federal system which recognizes the diversity and contributions of all Ethiopians.