In a statement carried by the Houthi-run state news agency sabanews.net, the two groups said that the council would include a rotating leadership that included a president and a deputy from both sides.
The move comes as UN- sponsored peace talks now underway in Kuwait show no sign of producing an agreement to end Yemen's civil war. The conflict has drawn in a coalition of Arab states led by Saudi Arabia and precipitated a humanitarian crisis in one of the poorest countries in the Middle East.
Houthi fighters
Yemen's dominant Houthi group and its allies in former President Ali Abdullah Saleh's General People's Congress party said on Wednesday they had agreed to set up a governing council to run the country, signalling frustration with peace talks in Kuwait.