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The 51-year-old Golay will be administered the oath of office by Governor Ganga Prasad at a function at Paljor Stadium at 10 am on Monday, the source said.
Some ministers are likely to be sworn in along with Golay, who was elected as the leader of the SKM legislature party on Saturday night.
The SKM supremo, accompanied by the 17 newly-elected legislators of his party, on Saturday had called on the Governor and staked claim to form the next government in Sikkim.
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After getting the legal opinion, the Governor invited Golay to form the next government, the Raj Bhavan source added.
The SKM, founded in 2013, won a slender majority in the 32-member Sikkim legislative assembly by bagging 17 seats against 15 won by the SDF.
Golay did not contest the assembly polls to devote all his time to campaign for his party.