Veteran NDP MP Don Davies has been selected as the new interim leader for the New Democratic Party of Canada.

At a special meeting of the party's federal council, the NDP's governing council voted to appoint Davies, MP for Vancouver Kingsway, after former leader Jagmeet Singh resigned a week ago following the party's disappointing election result. 

Sources first confirmed to CBC and the party later released a statement confirming Davies's appointment.

"While the recent election results were not what we hoped for, our commitment to building a better Canada has never been stronger," said NDP party president Mary Shortall in the statement from the party.

"With a renewed sense of purpose, we will hold the government to account and keep fighting for the issues we heard about on doorsteps across the country — public health care, affordable homes, good jobs and making the ultra-rich finally pay their fair share."

The federal council met Monday night after the party had the worst showing in its history on election night. Singh lost his B.C. seat and announced on the spot that he would resign.

Seven incumbent MPs out of a caucus of 24 are returning to the House of Commons, leaving the NDP without recognized party status. This leaves the New Democrats with fewer opportunities to speak during question period and no additional budget for the leader's office or research bureau. The NDP also won't be guaranteed seats on standing committees to shape government legislation.

After a devastating election, the party's caucus had met on Thursday to take stock and discuss next steps.

The NDP's constitution states that the party's federal council, in consultation with the parliamentary caucus, appoints an interim leader until a permanent one is chosen by party members.

The federal council is separate from the NDP's caucus of MPs.

While MPs represent constituents in their ridings, the NDP's federal council is the party's largest governing body between national party conventions, and it represents the NDP membership.

The interim leader does not have to be an MP.

On Tuesday, the party's lone Quebec MP and deputy leader, Alexandre Boulerice, told Radio-Canada he is interested in the interim job but closed the door on running to replace Singh.

Nycole Turmel was interim leader in July 2011 after former leader Jack Layton stepped aside for cancer treatment. Layton died in August of that year.

Nycole Turmel was interim NDP leader after Jack Layton stepped aside for health reasons. (Fred Chartrand/The Canadian Press)

At the time, the NDP formed the Official Opposition for the first time, and Turmel served until the party selected its new leader, Thomas Mulcair, in 2012.

Turmel said she wasn't surprised by Monday's election result, but was still saddened by it.

Although the party is far from where it was in 2011, Turmel said the next interim leader has a critical role growing fundraising and assisting the party in pulling off a successful leadership race.

Even though New Democrats may not hold official party status, she notes that the NDP and Bloc Québécois still have the balance of power in this minority Parliament. Turmel said the NDP's interim leader may have an important role in negotiating with the Liberals and other parties.

"I have to say it is a lot more important than people think," Turmel told CBC News. "I think it is important for [the new interim leader] to raise their voice and make it clear what they want."

The party's sole Vancouver Island MP, Gord Johns, also called Monday's result difficult and said the party has much internal work to do.

"I think we have some rebuilding … I'm not gonna deny that," Johns said in an interview with CBC Radio's The House.