Boris Johnson is to stand down as Conservative leader, but intends to carry on as prime minister until the autumn.
He is expected to make a resignation statement in Downing Street shortly.
It follows a dramatic 48 hours which saw dozens of ministers – including chancellor Rishi Sunak – resigning in protest at his leadership.
Mr Sunak’s replacement as chancellor Nahim Zahawi was among the ministers urging the PM to quit.
He resisted the calls until Thursday morning, when it became clear that he had lost the confidence of his MPs and that the government could no longer function.