The Palestinian Prime Minister Salam Fayyad has resigned, following months of political rows with President Mahmoud Abbas, the BBC reported.
Abbas accepted the resignation of his PM when the two men met on Saturday but Fayyad will remain in his position on a caretaker basis.
Strongly supported by the West, Fayyad's departure will be felt keenly by the Americans and could well stall their latest effort to promote the peace process in Palestine.
The row between Abbas and Fayyad had intensified after Abbas challenged Fayyad's decision to accept Finance Minister Nabil Kassis's resignation in March, overruling his Prime Minister and making his position untenable.