"I want to tell the Algerian people that the political situation in our country is worrying," Ali Benflis, who served as Algeria's prime minister for three years between 2000 and 2003, said.
"I understand and feel the aspirations of our youth and I want to assure that I have a pragmatic vision that includes promising solutions for the future," he added in a press conference in the Algerian capital.
By his announcement, Benflis is the first to announce his intention to vie for the country's top post.
President Abdelaziz Bouteflika, who has been ruling this North African country since 1999, is yet to announce if he would seek a new term in office.
Born in the eastern Algerian Batna province in 1944, Benflis worked as a lawyer before he was selected by Bouteflika to manage his presidential campaign in 1999. When he came to power, Bouteflika appointed Benflis as presidential chamberlain.
In 2000, Bouteflika chose Benflis to be the prime minister of Algeria, before he decided to run in the presidential elections against Bouteflika in April 2004, but he came a distant second to the Algerian strongman.
On Sunday, he said millions of Algerians are economically marginalized because of the shortage of permanent jobs.
"We need to make Algeria a country of hope," Benflis said. "This is possible in the presence of the necessary political will," he added.
He also promised to fight bribery and nepotism, saying he will seek to eradicate the roots of social problems in the Algerian society.