Former Environment Minister Marina Silva, who made a strong run in Brazil's last presidential election, will replace the late Eduardo Campos on the Socialist Party ticket.
Campos was killed Wednesday when his small plane smashed into a residential area in the city of Santos.
Ricardo Young, a Sao Paulo city councilman and close associate of Silva, said he took part in a Friday meeting in which party leaders told Silva they want her to run, and she accepted.
The party's leader in the senate, Rodrigo Rollemberg, told the O Globo newspaper that Silva had been chosen and the party was now working on choosing her running mate.
Silva, 56, is a party outsider who joined Campos' ticket last year only after she failed to obtain enough signatures to register her own party for the race.
However, she has a wide following and earned close to 20 per cent of the votes in the 2010 elections. An evangelical Christian, Silva was a close associate of environmental activist Chico Mendes, who was murderer in 1988.
Polls had shown Campos running a distant third after Rousseff and opponent Aecio Neves, but many political analysts say she may be a stronger candidate, and could at least prevent a first-round victory for Rousseff on Oct 5. Her main support comes among Brazilians disgruntled by sluggish growth, high taxes and woeful health care and education.
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