Dalli resigned as the EU's commissioner for health and consumer protection last week after an investigation connected him with an attempt to influence EU tobacco legislation.
"Prime Minister Lawrence Gonzi spoke with President of the European Commission José Manuel Barroso and informed him of the nomination of the Maltese government," a statement from Malta's Department of Information said late on Saturday (20 October).
The nomination must be approved by the European Parliament after a hearing where the candidate is quizzed by MEPs.
Borg has been foreign minister since 2008 and deputy leader of the ruling Nationalist Party since 2004.
Born in 1957, Borg studied at St Aloysius College and later at the University of Malta from where he graduated as a lawyer in 1979. He is a constitutional lawyer and holds an MSc in human rights. He has three children.