The decision was made at a meeting convened soon after Kamal Nath reached Bhopal, along with party MP Jyotiraditya Scindia, who was the other contender for the post.
The two leaders had earlier met party President Rahul Gandhi in New Delhi.
The Congress party also tweeted about Kamal Nath being the next Chief Minister of Madhya Pradesh and said that an era of change will dawn in the state.
“Our best wishes to Kamal Nath for being elected Chief Minister of Madhya Pradesh. An era of change is upon Madhya Pradesh with him at the helm,” the party said.