The decision, supported by the pro-presidential majority in the parliament, was challenged by the opposition, which said the move was politically motivated.
The opposition said the personality of President Mikheil Saakashvili, who was swept to power on the back of the 2003 "rose revolution", would guarantee the victory at the parliamentary elections for the pro-presidential lawmakers.
Georgia held parliamentary election last time in March 2004 after the results of the previous November 2003 election were annulled as they were believed to be rigged by former Georgian President Eduard Shevardnadze.
The March 2004 parliamentary election was won with a landslide victory by National Movement - Democrats, the party supported by Saakashvili, gaining 67% of the vote or 135 seats in the 235-seat parliament. The opposition party, the Rightist Opposition, won 7.6% of the vote or 15 seats in the legislative body.
The exact date for the October 2008 presidential and parliamentary elections in Georgia will be set at the parliament's 2007 spring session.