Egypt's Prime Minister Ahmed Shafiq has resigned and a former transport minister has been asked to form a new government.
Mr Shafiq was appointed days before President Hosni Mubarak was forced out of office after days of anti-government protests.
The country's ruling military says in a statement that the Supreme Council of the Armed Forces has decided to accept the resignation of Mr Shafiq and has appointed Essam Sharaf to form the new government.
One of the protesters' key demands had been that Mr Shafiq and other top ministers appointed at the end of the Mubarak rule step down, the BBC reports.
The protests have been continuing in Cairo, where demonstrators have been demanding the old guard of politicians step down.
