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The regime had set out what it called a roadmap for democracy but had not previously given any firm timetable.
It made the announcement in a statement on state television and radio.
Burma has been under military rule since 1962. The country saw rare nationwide protests against the ruling junta in August and September.
Saturday's announcement said that "multi-party democratic elections will be held in 2010, according to the new constitution.
"It is suitable to change the military administration to a democratic, civil administrative system, as good fundamentals have been established," the regime said.
"The country's basic infrastructure has been built, although there is still more to do in striving for the welfare of the nation."
(BBC)
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