The anticipated announcement came three days after his party again won all seats at an uncompetitive election.
Hun Sen, 70, has become increasingly authoritarian after nearly four decades of rule in Cambodia.
He first flagged a transition in 2021, but up to now no one knew exactly when it would take place.
His eldest son, Hun Manet, until recently the commander of the Royal Cambodian Army, has long been groomed for the role.
In his announcement, Hun Sen said his son would be appointed prime minister on 10 August.
He said he would be stepping down as staying in office could cause instability. However he will retain leadership of the ruling Cambodian People's Party - a position political analysts say still gives him ultimate control.
Source: www.bbc.com
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