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At a congress of his ruling Socialist Party, Gyurcsany offered to hand over power to a successor but would like to retain the position as the party's chairman.
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File photo shows that Hungary's Prime Minister Ferenc Gyurcsany briefs the media ahead of an emergency European Union leaders summit in Brussels March 1, 2009 |
The prime minister said he will officially notify parliament of his decision on Monday and called for a meeting of his party in two weeks to choose a candidate to head the new administration, state news agency MTI reported.
Gyurcsany also planned to organize a "constructive vote of no confidence" in parliament in which at least one-fifth of all MPs propose a no confidence vote, a new prime ministerial candidate is picked and the parliament votes the incumbent out and his successor in.
Gyurcsany was re-elected as party chairman with 85 percent support at the congress earlier on Saturday. The Socialists are scheduled to choose their candidate for the premiership on April 5.
A poll released by research firm Median on Wednesday showed that Gyurcsany's popularity stood at just 18 percent, the lowest ever for a prime minister since 1990.
Analysts said that a new prime minister would create a fresh opportunity for forming a majority coalition government with the Free Democratic Party or the conservative Democratic Forum Party or both.
Hungary has been hit hard by the global financial crisis and has received a loan of 25.1 billion U.S. dollars from the International Monetary Fund and other institutions.