Palestinian Prime Minister Salam Fayyad has resigned.
Mr Fayyad submitted his resignation to President Mahmoud Abbas at a short meeting on Saturday in Ramallah, following weeks of speculation about his future.
The BBC reports Mr Fayyad had been at odds with Mr Abbas over the territory's economic policy after the resignation of finance minister Nabil Kassis last month.
The WAFA news agency said the president accepted Mr Fayyad's resignation, but asked him to remain as caretaker until a new government is formed.
Mr Fayyad, 61, has been prime minister of the Palestinian Authority since 2007.
A former International Monetary Fund official, the BBC reports he is considered politically independent, being a member of neither Fatah, nor of Hamas, who control the Gaza Strip.
He had threatened to quit on several previous occasions, reportedly over the direction and handling of economic policy.
