Palestinian Prime Minister Salam Fayyad has resigned, officials say

Palestinian President Mahmoud Abbas is reported to have accepted the resignation of his PM, Salam Fayyad.

The two have been at odds over economic policy since the finance minister quit last month, and rumours were rife that Mr Fayyad would step down.

Reports of the resignation come despite efforts by US Secretary of State John Kerry in recent days to reconcile them.

Mr Fayyad is expected to remain as caretaker prime minister until a new government is formed.

No official announcement has yet been made.

Palestinian news agency Wafa reported that Mr Abbas asked Mr Fayyad to stay in his post until the Palestinian president names a new government, which he is expected to do shortly.

Mr Abbas reportedly waited several days before accepting the resignation.

Mr Fayyad, 61, has been prime minister of the Palestinian Authority since 2007.

He is considered a liberal and is widely respected among international organisations and donors.

Last month Mr Abbas overruled Mr Fayyad after he had accepted the resignation of Finance Minister Nabil Kassis.