Warlord Khalifa Haftar on Monday unilaterally declared himself the ruler of Libya.
In a video message, Haftar pointed to street demonstrations in areas under his control, and claimed he "accepted the mandate of the Libyan people" to govern the country.
He said the agreement, signed by the warring sides in Libya under the auspices of the UN, has "lost its rule."
The agreement was signed in 2015 in Morocco. As part of the agreement, the UN-recognized Government of National Accord (GNA) was formed to manage the transition process in Libya.
Haftar and his political allies tried to prevent this agreement from entering into force with his initiatives in the field.
Since the ouster of late ruler Muammar Gaddafi in 2011, two seats of power have emerged in Libya: renegade military commander Khalifa Haftar in eastern Libya, supported by Egypt and the United Arab Emirates, and the Government of National Accord (GNA) in Tripoli, which enjoys UN and international recognition.
Haftar's Libyan National Army (LNA), which is based in the east, launched an offensive to take Tripoli last April which led to chaos and bloodshed but stalled on the outskirts of the city.