The post-handover administration was yesterday given a choice of two electoral methods for the 1998 election.
Tung Chee-hwa's government will decide whether the 20 geographical seats will be chosen by proportional representation or single-vote, multiple-seat.
The framework, endorsed by the Preparatory Committee yesterday, was seen as a compromise after Mr Tung called for his administration to be given flexibility.
Last night he promised to map out the electoral rules in a 'democratic, fair and impartial' manner. But he refused to say whether the electoral systems would undermine the Democratic Party's chances of victory.
The committee also listed 15 groups from which Mr Tung will choose nine to replace the functional constituency seats introduced by Governor Chris Patten.
It said 600 of the 800 members of the Election Committee - which will pick 10 legislators - will be chosen by functional seat voters, minus municipal councillors and Heung Yee Kuk members.