King Juan Carlos announced his abdication of the throne on Monday causing shockwaves across Europe.
The governing body of Spain revealed on Tuesday that a draft law, which will allow the abdication of King Juan Carlos, will be approved first by the Congress next week, and then by the Senate, most likely on the eve of the proclamation on 17 June.
When the draft law is put into place, the proclamation of Felipe as the new king of Spain can begin.
Explaining his decision to abdicate after nearly 39 years, Juan Carlos told his people that the country's present economic crisis requires the energy of a new generation.
King Juan Carlos of Spain with Prince Felipe
He said that his son Prince Felipe who will become Felipe VI, "represents stability". He described the Prince as having "the maturity and preparation" to assume responsibility and "open the way for a new era of hope" with "the support of [his wife] Princess Letizia".
The royal patriarch was speaking during a televised address from his study, flanked by a picture of himself with his 46-year-old heir and his granddaughter Princess Leonor, who is now in line to become the Princess of Asturias, a title similar to the Prince of Wales in Britain.
Prince Felipe and Princess Letizia
The decision was taken, said the outgoing sovereign, on his 76th birthday earlier this year.
He added: "Today a new generation must come to the fore, one with new energy and the determination needed to undertake the transformation and reforms that the current circumstances demand; a generation that can confront with renewed intensity and dedication the challenges of tomorrow".