diff --git a/config/config.go b/config/config.go
index 65e20946f5..d37fc8127b 100644
--- a/config/config.go
+++ b/config/config.go
@@ -90,6 +90,7 @@ type AzureConfig struct {
 }
 
 type AzureClientOpt struct {
+	ClientCredentialsType     string `config:"type"`
 	ClientID                  string `config:"client_id"`
 	TenantID                  string `config:"tenant_id"`
 	ClientSecret              string `config:"client_secret"`
@@ -99,6 +100,13 @@ type AzureClientOpt struct {
 	ClientCertificatePassword string `config:"client_certificate_password"`
 }
 
+const (
+	AzureClientCredentialsTypeManagedIdentity  = "managed_identity"
+	AzureClientCredentialsTypeSecret           = "service_principal_with_client_secret"
+	AzureClientCredentialsTypeCertificate      = "service_principal_with_client_certificate"
+	AzureClientCredentialsTypeUsernamePassword = "service_principal_with_client_username_and_password"
+)
+
 const (
 	SingleAccount       = "single-account"
 	OrganizationAccount = "organization-account"
diff --git a/resources/providers/azurelib/auth/credentials.go b/resources/providers/azurelib/auth/credentials.go
index b2219d04d9..f829f13d78 100644
--- a/resources/providers/azurelib/auth/credentials.go
+++ b/resources/providers/azurelib/auth/credentials.go
@@ -39,19 +39,21 @@ type ConfigProvider struct {
 }
 
 func (p *ConfigProvider) GetAzureClientConfig(cfg config.AzureConfig) (*AzureFactoryConfig, error) {
-	switch {
-	case cfg.Credentials.ClientSecret != "":
+	switch cfg.Credentials.ClientCredentialsType {
+	case config.AzureClientCredentialsTypeSecret:
 		return p.getSecretCredentialsConfig(cfg)
-	case cfg.Credentials.ClientCertificatePath != "":
+	case config.AzureClientCredentialsTypeCertificate:
 		return p.getCertificateCredentialsConfig(cfg)
-	case cfg.Credentials.ClientUsername != "" || cfg.Credentials.ClientPassword != "":
+	case config.AzureClientCredentialsTypeUsernamePassword:
 		if cfg.Credentials.ClientUsername == "" || cfg.Credentials.ClientPassword == "" {
 			return nil, ErrIncompleteUsernamePassword
 		}
 		return p.getUsernamePasswordCredentialsConfig(cfg)
+	case "", config.AzureClientCredentialsTypeManagedIdentity:
+		return p.getDefaultCredentialsConfig()
 	}
 
-	return p.getDefaultCredentialsConfig()
+	return nil, ErrWrongCredentialsType
 }
 
 func (p *ConfigProvider) getDefaultCredentialsConfig() (*AzureFactoryConfig, error) {
@@ -115,4 +117,7 @@ func (p *ConfigProvider) getUsernamePasswordCredentialsConfig(cfg config.AzureCo
 	}, nil
 }
 
-var ErrIncompleteUsernamePassword = errors.New("incomplete username and password credentials")
+var (
+	ErrWrongCredentialsType       = errors.New("wrong credentials type")
+	ErrIncompleteUsernamePassword = errors.New("incomplete username and password credentials")
+)
diff --git a/resources/providers/azurelib/auth/credentials_test.go b/resources/providers/azurelib/auth/credentials_test.go
index b7d92c77ee..c5c4695ae0 100644
--- a/resources/providers/azurelib/auth/credentials_test.go
+++ b/resources/providers/azurelib/auth/credentials_test.go
@@ -44,13 +44,25 @@ func TestConfigProvider_GetAzureClientConfig(t *testing.T) {
 				Credentials: &azidentity.DefaultAzureCredential{},
 			},
 		},
+		{
+			name: "Should return a error on unknown client credentials type",
+			config: config.AzureConfig{
+				Credentials: config.AzureClientOpt{
+					ClientCredentialsType: "unknown",
+				},
+			},
+			authProviderInitFn: func(m *MockAzureAuthProviderAPI) {},
+			want:               nil,
+			wantErr:            true,
+		},
 		{
 			name: "Should return a ClientSecretCredential",
 			config: config.AzureConfig{
 				Credentials: config.AzureClientOpt{
-					TenantID:     "tenant_a",
-					ClientID:     "client_id",
-					ClientSecret: "secret",
+					ClientCredentialsType: config.AzureClientCredentialsTypeSecret,
+					TenantID:              "tenant_a",
+					ClientID:              "client_id",
+					ClientSecret:          "secret",
 				},
 			},
 			authProviderInitFn: func(m *MockAzureAuthProviderAPI) {
@@ -68,10 +80,11 @@ func TestConfigProvider_GetAzureClientConfig(t *testing.T) {
 			name: "Should return a UsernamePasswordCredential",
 			config: config.AzureConfig{
 				Credentials: config.AzureClientOpt{
-					TenantID:       "tenant_a",
-					ClientID:       "client_id",
-					ClientUsername: "username",
-					ClientPassword: "password",
+					ClientCredentialsType: config.AzureClientCredentialsTypeUsernamePassword,
+					TenantID:              "tenant_a",
+					ClientID:              "client_id",
+					ClientUsername:        "username",
+					ClientPassword:        "password",
 				},
 			},
 			authProviderInitFn: func(m *MockAzureAuthProviderAPI) {
@@ -89,10 +102,11 @@ func TestConfigProvider_GetAzureClientConfig(t *testing.T) {
 			name: "Should return error on incomplete Username Password Credential (missing password)",
 			config: config.AzureConfig{
 				Credentials: config.AzureClientOpt{
-					TenantID:       "tenant_a",
-					ClientID:       "client_id",
-					ClientUsername: "username",
-					ClientPassword: "",
+					ClientCredentialsType: config.AzureClientCredentialsTypeUsernamePassword,
+					TenantID:              "tenant_a",
+					ClientID:              "client_id",
+					ClientUsername:        "username",
+					ClientPassword:        "",
 				},
 			},
 			authProviderInitFn: func(m *MockAzureAuthProviderAPI) {},
@@ -103,10 +117,11 @@ func TestConfigProvider_GetAzureClientConfig(t *testing.T) {
 			name: "Should return error on incomplete Username Password Credential (missing username)",
 			config: config.AzureConfig{
 				Credentials: config.AzureClientOpt{
-					TenantID:       "tenant_a",
-					ClientID:       "client_id",
-					ClientUsername: "",
-					ClientPassword: "password",
+					ClientCredentialsType: config.AzureClientCredentialsTypeUsernamePassword,
+					TenantID:              "tenant_a",
+					ClientID:              "client_id",
+					ClientUsername:        "",
+					ClientPassword:        "password",
 				},
 			},
 			authProviderInitFn: func(m *MockAzureAuthProviderAPI) {},
@@ -117,6 +132,7 @@ func TestConfigProvider_GetAzureClientConfig(t *testing.T) {
 			name: "Should return a ClientCertificateCredential",
 			config: config.AzureConfig{
 				Credentials: config.AzureClientOpt{
+					ClientCredentialsType:     config.AzureClientCredentialsTypeCertificate,
 					TenantID:                  "tenant_a",
 					ClientID:                  "client_id",
 					ClientCertificatePath:     "/path/cert",