Israeli Prime Minister Ehud Olmert has told the Israeli Cabinet he is going to resign - but he will remain in power until a new government is formed.
He is expected to be replaced by Israeli Foreign Minister Tzipi Livni who has six weeks to form a fresh coalition government.
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He has yet to officially submit his resignation to President Shimon Peres.
The BBC's Wyre Davies in Jerusalem says Mr Olmert may remain in office as caretaker prime minister for some time while his successor as leader of the Kadima Party, Ms Livni, tries to form a new government.
He said it will not be easy for her to put together a coalition government because Kadima does not have a majority in the Israeli parliament.
It is a complicated process that may end in general elections at the start of next year, until when Ehud Olmert may remain as prime minister, our correspondent added.
Ms Livni won the leadership of the governing Kadima party on Thursday, beating Transport Minister Shaul Mofaz by just 431 votes, or 1.1%.
(BBC)
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