The announcement was made by BJP president Rajnath Singh after a meeting of the party's parliamentary board.
It is learnt that the Rashtriya Swayamsevak Sangh has endorsed the decision to project Mr Advani as the BJP's prime minister-inwaiting. Mr Rajnath Singh also held consultations with former prime minister Atal Behari Vajpayee before making the announcement.
Mr Vajpayee is understood to have told the party president that his health did not permit him to play an active role any longer.
He said Mr Advani should be entrusted with the responsibility of leading the party into the next election, and said that his blessings and guidance would always be available to Mr Advani.
Mr Advani, 80, who was deputy prime minister and home minister in the Vajpayee government, said after the party's announcement: "I express my gratitude to the