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Salam Fayyad, the Palestinian prime minister, has submitted his resignation to Mahmoud Abbas.
Announcing the decision on Saturday, Fayyad said the resignation would take effect after the formation of a Palestinian unity government.
He, however, said he would quit no later than the end of March.
Fayyad's announcement comes just before the resumption of power-sharing talks between Abbas, who heads the Fatah movement, and his political rivals from the Palestinian Hamas group.
Fayyad was appointed by Abbas after Hamas's takeover of the Gaza Strip in 2007.
His decision to resign is being seen as a conciliatory gesture toward Hamas.
Hamas has repeatedly demanded that Fayyad step down.
A Hamas official in Gaza said his group expected the resignation.
Fawzi Barhoum, a spokesman for the group, said his government was unconstitutional and worked for private interests.
PHOTO CAPTION
Palestinian prime minister Salam Fayyad, seen here in February 2009,
Al-Jazeera
