The Palestinian government officially submitted its resignation to president Mahmud Abbas Tuesday, a statement said, though it will remain in place while a new administration is formed.
Analysts see the change in government as an attempt by Abbas to strengthen his position and further isolate his political rivals Hamas as a decade-long split in Palestinian politics deepens.
"The government of Prime Minister Rami Hamdallah submitted on Tuesday its resignation to President Mahmud Abbas," official news agency Wafa said in English following a cabinet meeting.
The government "will continue to serve our people wherever they are and shoulder all its responsibilities until a new government is formed," it added.
Hamdallah had offered to resign Monday, after the central committee of Abbas's Fatah movement recommended the formation of a new government that would comprise members of the Palestine Liberation Organisation (PLO).
The Islamist movement Hamas, which runs the Gaza Strip, is not part of the PLO.
Hamas condemned the government's resignation, saying Abbas was seeking to establish a "separatist government" to serve his interests.
