Italian Prime Minister Mario Draghi has resigned from President Sergio Mattarella after his unity government collapsed, plunging the country into political turmoil and hitting financial markets.
Mattarella's office announced in a statement that the head of state "took note" of the resignation and asked Dragi to remain in his temporary position.
The statement did not say what Mattarella will do next. Political sources said earlier this week that they are likely to dissolve parliament and call early elections in October, Reuters reports.
Matarella plans to meet with the presidents of both houses of parliament on Thursday afternoon.
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Italy's coalition fell apart on Wednesday when Draghi's three main partners rejected a confidence vote he called to try to end divisions and rebuild their fragile alliance.
The political crisis has restored months of stability in Italy, during which the respected former central banker Draghi helped shape Europe's tough response to Russia's invasion of Ukraine and strengthened the country's position in financial markets.
Italian bonds and stocks sold off sharply on Thursday, just as markets braced for the European Central Bank's first rate hike since 2011.
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