Algeria is the only country in North Africa largely untouched by the "Arab Spring" uprisings, but the election, scheduled for May, could be a catalyst for a surge in anti-government protests which would destabilize the oil and gas exporter.
A source with knowledge of discussions inside the ruling elite said a decision had already been made to appoint a more neutral figure as new prime minister to oversee the election, but there was no confirmation of this.
The main opposition parties demanded that Prime Minister Ahmed Ouyahia be removed before the election because, they said, his government could not be trusted to oversee a free and fair vote.
"If Bouteflika is serious about free and fair elections, he must accept our demands, and appoint a new government with one task: to supervise the elections," said Fateh Rebai, whose Ennahda party was one of those seeking a change in government.
"If we really want free and fair elections, we must change the government. We do not trust it," he told Reuters. "(Election) fraud will mean that the government is not serious about reforms, making a revolt a very likely scenario."
That call was backed by a secularist opposition group, the Workers' Party. Two other Islamists parties, the MSP and the Front for Justice and Development, have also demanded a new government.
