COPENHAGEN (Reuters) - Estonia's president has designated Climate Minister Kristen Michal of the Reform Party as prime minister nominate and tasked him with forming a new government, the president's office said on Tuesday.

Kaja Kallas, prime minister since 2021, resigned on Monday in order to take up a new job as the European Union's next foreign policy chief.

"Given the current balance of power in national politics, the coalition of the Reform Party, the Social Democrats and Estonia 200 has the best chance of forming what will hopefully be a decisive government," President Alar Karis said in a statement.

(Reporting by Louise Breusch Rasmussen in Copenhagen, editing by Essi Lehto)