Palestinian Authority prime minister Salam Fayyad formally presented his resignation to president Mahmoud Abbas on Saturday, a Palestinian official said.
"Fayyad met Abbas for half an hour in the president's headquarters in Ramallah in the West Bank and officially handed him his written resignation," the official told AFP.
Abbas and Fayyad have been at loggerheads as criticism of the prime minister's economic policies has mounted in the ruling Fatah movement, but Washington has lobbied hard for the US-educated economist to remain in post.