Former Malaysian Prime Minister Tun Abdullah Ahmad Badawi has been endorsed by the Cabinet as the new adviser to state oil and gas company Petronas, Premier Najib Tun Razak announced on Friday (March 25), replacing another former premier Tun Dr Mahathir Mohamad whose services were terminated earlier this month.

Tun Abdullah's appointment is effective April 1, Malaysia media reported.

"The decision to terminate the appointment of Tun Dr Mahathir Mohamad was made by the Cabinet since he was no longer supporting the present government, especially with the launch of 'Deklarasi Rakyat' (Citizen's Declaration) together with opposition leaders," Najib said in a statement reported by state news agency Bernama.

The Cabinet had on March 11 unanimously decided to removed Dr Mahathir as Petronas adviser, saying that the former prime minister no longer supported the present government.

The decision came a week after Mahathir brought together a broad alliance that aims to remove Najib from power, in a move that threatens to worsen their clash.

Abdullah, 76, was seen as the favourite to replace Mahathir's position at Petronas given that the post had gone to two previous prime ministers, namely Hussein Onn and Mahathir.