His elder brother and ousted Prime Minister Nawaz Sharif was made the ruling party's top leader, "Quaid" for lifetime.
PML-N Chairman Raja Zafarul Haq proposed Nawaz's elevation as "quaid for life", saying, "Mian Nawaz Sharif was, is and Inshallah will remain the leader of the PML-N".
The key meeting was attended by former party president Nawaz Sharif, Prime Minister Shahid Khaqan Abbasi, Maryam Nawaz, Hamza Shahbaz and other senior members of the party.
The meeting was called following a Supreme Court ruling ordering the removal of Nawaz Sharif as party chief.
During the meeting, Nawaz Sharif proposed the name of Shahbaz Sharif as acting President of the party.
It is believed that the PML-N leadership has taken the decision about its next Punjab chief, but it has more than a month to fill up this vacancy. PML (N) is still expected to emerge as the biggest party in Senate.
In reply to a question about whether Begum Kulsoom Nawaz could be considered as a candidate for the top party post, he said: "Begum Kulsoom's health does not allow her to run the party". Afterwards, the party's general council is required to elect the president within 45 days.
Nawaz has already nominated Shahbaz for the prime minister candidate if PML-N wins this year's general elections. Sharif criticized his disqualification by terming it a conspiracy against him.
He said the PML-N can never forget or ignore his efforts.
Nawaz Sharif had earlier been declared unfit to hold public office in the landmark Panama Papers judgement, in which a five-member bench of the Supreme Court had unanimously ruled that the former prime minister had not been honest and truthful in discharging his obligations as a lawmaker.
Tuesday's move to elevate Shahbaz Sharif as acting head of the Pakistan Muslim League party was seen as an attempt to continue of dynastic political system, which has been opposed by critics.
Last week, the Supreme Court had ruled that an individual disqualified under Articles 62 and 63 of the Constitution can not serve as head of a political party.