Yingluck, a sister of the ousted leader, Thaksin Shinawatra, unveiled an agreement on Monday that gives the new coalition control of about 60 per cent of parliament, or 299 seats.
The accord came unusually quickly, as the Thai constitution allows the new parliament 30 days after the elections to convene and select a house speaker.
Pheu Thai won a majority of 265 in the 500-seat parliament - a margin big enough to rule alone without forming a coalition - and Yingluck is set to become Thailand's first female prime minister.
Yingluck said on Monday the first mission of her administration would be "how to lead the country to unity and reconciliation" and vowed to boost transparency and to fight corruption.
"I myself, and Pheu Thai, are determined to serve the nation," she said.
Yingluck said her coalition would be joined by Chart Thai Pattana, with 19 seats in preliminary results; Chart Pattana Pheu Pandin, with 7 seats; Palang Chon, 7; and Mahachon, 1.
Abhisit resigns
Earlier on Monday Abhisit Vejjajiva, the outgoing prime minister, resigned from the leadership of the Democrat party, taking responsibility for his party's loss.
"As the election results came out with the party winning fewer votes and fewer seats than in the 2007 poll, and in the spirit of a good leader of an organisation, I should take responsibility," he said.
Abhisit said the Democrats would hold a general meeting within 90 days to choose a successor.
Thailand has been suffering from political instability for the past several years since Thaksin, a telecoms tycoon turned prime minister, was deposed in a 2006 military coup alongside conviction for corruption.
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