Nauru will have a new leader by the end of the day after its president Baron Waqa lost his bid for re-election.
Mr Waqa was the tiny South Pacific island nation's leader for six years but did not keep his seat after the weekend election.
Nauru's parliament will convene on Tuesday to elect a new president and Speaker before a cabinet is selected.
The outgoing president's support was critical to Nauru hosting one of Australia's asylum seeker detention facilities on the island.
Since 2001 Australia has placed asylum seekers caught trying to reach Australia by boat in the Nauru detention facility while their refugee status is processed.
Nauru makes about a third of its national income from the arrangement.
The island is the world's smallest republic, with just 7000 people eligible to vote for the 19-member parliament that chooses the president.
It is the world's third-smallest nation behind Vatican City and Monaco.
The Nauruan government made headlines last year when it forced Medecins Sans Frontieres out of the country, abruptly ending the group's free medical care for asylum seeker detainees and locals.
Nauru was scathing of MSF, taking particular offence to their "beloved home" being labelled an "open-air prison".
MSF Australia executive director Paul McPhun told a Senate committee on Monday the group's services were "high quality, effective" and in increasing demand.
He believes MSF were told to leave so they couldn't expore the "fundamental reality" of mental health instances on Nauru.
