French Prime Minister Edouard Philippe tendered the government's resignation as a post-election formality to President Emmanuel Macron who asked him to form a new cabinet, Mr Macron's office said.
The new government is to be named tomorrow afternoon, the presidency said in a statement.
The government's resignation was widely expected as a traditional formality after a legislative election yesterday in which Macron's party won a commanding majority in parliament.
Mr Macron reappointed Mr Philippe as prime minister.
Mr Macron's centrist Republic on the Move party and its centre-right Modem ally won 350 seats out of 577 in the lower house, the results showed after a vote that saw a record low turnout.
Government spokesman Christophe Castaner said the high abstention rate - more than 50% of voters stayed at home - was a failure for the political class and highlighted the need to change politics in France.
"The real victory wasn't last night, it will be in five years time when we have really changed things," Mr Castaner told RTL radio.
Though lower than forecast by pollsters in the run-up to the vote, Mr Macron's majority swept aside France's main traditional parties, humiliating the Socialist and conservative The Republicans party that alternated in power for decades.
Yesterday’s high abstention rate underlines that Mr Macron will have to tread carefully with reforms in a country with strong trade unions and a history of street protests that have forced many a past government to dilute new legislation.
Mr Macron's twin victories in last month's presidential election and yesterday's parliamentary vote marks the routing of the old political class.
Mr Macron seized on the growing resentment towards a political elite perceived as out of touch, and on public frustration at its failure to create jobs and spur stronger growth, to win the presidency.
His year-old party then filled the political space created by the disarray within the Socialist Party and the Republicans, with last night capping a sequence of events that a year ago looked improbable.