Dr Vojislav Kostunica was confirmed as Yugoslav President last night by the Yugoslav Constitutional Court, by the international community and finally by his political rival, Mr Slobodan Milosevic, who was reported to have conceded defeat in the recent elections.
Mr Milosevic, addressing the nation on television, conceded defeat in the polls and congratulated his opponent.
Yugoslavia's army chief of staff, Lieut Gen Nebojsa Pavkovic, later also congratulated President-elect Kostunica.
Mr Milosevic said in a brief recorded statement: "I congratulate Vojislav Kostunica on his election victory and I wish our nation success over the next term."
"I've just got official information that Vojislav Kostunica won the elections," he said, adding that his Socialist Party would be a strong political opponent to the new administration.
The recognition crowned the victory that Dr Kostunica won at the polls and that demonstrators have asserted in the streets.
The Yugoslav parliament is expected to assemble today to confirm Dr Kostunica as president. Members of parliament from Montenegro are expected to arrive in Belgrade for a session in the afternoon, an opposition leader said.
Dr Kostunica claimed outright victory in the disputed September 24th presidential elections, and crowds stormed parliament on Thursday after it appeared that Mr Milosevic was seeking to cling to power.
European governments acclaimed the move toward democracy in Belgrade. EU officials said sanctions should begin to be lifted on Monday. A European oil embargo and flight ban would go immediately but financial sanctions and a visa ban would probably not be removed until later.
Russia joined the West yesterday in backing Dr Kostunica as winner of Yugoslavia's presidential poll and quoted Mr Milosevic as ruling out the use of force to retain power.
But the Russian Foreign Minister, Mr Igor Ivanov, who met Mr Milosevic at his residence in a Belgrade suburb, said Mr Milosevic had informed him that he intended to continue playing a political role in Yugoslavia.
The United States responded that it would not support such a course of action. The White House spokesman, Mr Jake Siewert, said: "Our first step right now is to remove him from power." Mr Siewert said that as an indicted war criminal, Mr Milosevic must be held accountable for his crimes. Sanctions would go when "Milosevic is gone and the democratic transition is complete", he added.
Saying a dark cloud had lifted from the Balkans, President Clinton hailed the popular uprising as an "extraordinary victory" for the country and the world. He said there should be no future political role for Mr Milosevic.
Mr Ivanov and Mr Milosevic met a day after hundreds of thousands of Serbs demonstrated in Belgrade to end the Serb leader's 13-year grip on power.
Yugoslav television aired pictures of the meeting showing Mr Milosevic with dark circles under his eyes as he spoke with Mr Ivanov in a living room of his residence. But he greeted Mr Ivanov with his characteristic commanding handshake.
Earlier, Mr Ivanov met Dr Kostunica in Mr Milosevic's old presidential office. "I have passed to Dr Kostunica regards from the President of Russia, Mr Putin, and congratulated him on his victory in the presidential election," Mr Ivanov said.
Dr Kostunica, however, rebuked Russia for dithering in the crisis.
Meanwhile a leading Serbian economist and a backer of Mr Kostunica, Mr Mladjan Dinkic, warned that Mr Milosevic was trying to fly Yugoslavia's state gold reserves out to China.