Up to 165 lawmakers voted in favor of Deuba, who leads the Nepalese Congress party, The Kathmandu Post reported.
Meanwhile, 83 assembly members voted against him and one lawmaker remained neutral, the website added.
A total of 249 lawmakers out of 271 that make up the Lower House of the Himalayan nation participated in the voting process.
Deuba, 75, now has support of 60 percent of Nepalese lawmakers.
Nepal’s former Prime Minister Khadga Prasad Sharma Oli, chairman of the Communist Party of Nepal, became leader of the opposition, despite leading the largest party in the House, with 121 members.