King Bhumibol Adulyadej approved Abhisit's request to dissolve Parliament's lower chamber, clearing the way for the elections, which will be held with six months remaining in the term of the Abhisit coalition government.
The government faced prolonged demonstrations by the anti-government Red Shirt United Front for Democracy against Dictatorship last year, resulting in violence that caused the deaths of about 90 people, including protesters, soldiers and some civilians, the Thai News Agency reported.
The Abhisit government would be the 12th Thai government to end with the dissolution of the House.
Under the terms of dissolution, a caretaker government would remain in charge until a new Cabinet is appointed after the elections.
"It is again a new start for people to move Thailand forward and to solve various problems of people and their families efficiently under democratic means," the prime minister told the nation, CNN reported.