
Speaking alongside his wife Sarah outside No 10 Downing Street, he said the job had been "a privilege" and wished his successor well. His decision comes as the Tories and Liberal Democrats are poised to agree a deal to form a government.
His resignation follows Thursday's general election in which no party won an overall majority but the Conservatives won the most seats and votes. Both Labour and the Tories have since been trying to persuade the Lib Dems to join them in a coalition government to run the country. Mr Brown had previously said he would resign as Labour leader, but stay on as prime minister until September, if Labour could agree a deal with the Lib Dems.
Deputy Labour leader Harriet Harman is to become Labour leader until a replacement is elected. Mr Brown succeeded Tony Blair as prime minister in June 2007 after spending ten years as chancellor of the exchequer.
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