“We will begin the new step of political reforms by holding parliamentary elections on May 10, 2012, in conformity with the new electoral code that has entered into force,” he said in a speech on national TV and radio.
The election will be the fourth multiparty parliamentary vote in Algeria, which last went to the polls in 2007.
It will also be the first since the Arab Spring began last year with a popular revolt in neighbouring Tunisia, which triggered unrest in Algeria and led Bouteflika to pledge a raft of reforms last April.
The government announced Tuesday that the number of parliamentary seats would be raised from 389 to 462.
In his speech lasting under 10 minutes, the president called for “massive participation” of young people in the elections, saying that it was necessary for the new parliament to be credible.
“I am expecting political parties, unions and civil society organisations to stand together to mobilise voters, the young in particular,” he said.
The president said he had “prohibited all… members of the government from using state resources or to hold official visits” for electoral purposes, and that the administration has “the responsibility to ensure the neutrality of their agents.”
He added that other reforms will be put in place after the elections, without giving further details.
Bouteflika announced last year that the new parliament will be charged with amending the constitution.