The decision was taken at a crucial meeting chaired by Bangladesh President Mohammed Shahabuddin. The development came a day after Sheikh Hasina resigned as Prime Minister and fled the country.
In a day of swift developments, the Bangladesh President also dissolved the Parliament and the army carried out a top order reshuffle and sacked one general.
Yunus reportedly relented and decided to accept the position after agitating student leaders pressed him to steer the caretaker government. The Nobel laureate was quoted as saying he did not initially agree.
"I told them I have a lot of work to finish. But the students kept pressing me," Yunus said.
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