Palestinian Prime Minister Mahmoud Abbas resigned on Saturday dealing a serious below to US backed peace efforts in the region.
Abbas submitted his resignation in a letter to Yasser Arafat.
Abbas had been weakened by his wrangling with Arafat, the near-collapse of a US-backed peace plan and his inability to improve the daily lives of Palestinians.
The beleaguered prime minister, on the job only four months, told parliament earlier this week that it must either back him or strip him of his post.