Palestinian Prime Minister Salam Fayyad resigned Saturday after a long dispute with President Mahmoud Abbas.
Fayyad agreed to stay on as a caretaker prime minister until a new government is formed.
Fayyad is credited with using hundreds of millions in international aid to build roads, schools, and other infrastructure in the West Bank. But he and President Abbas strongly disagreed over economic policy and the powers of the prime minister.
The United States regards Fayyad as a moderate in the volatile Middle East. He had received public support from President Barack Obama and Secretary of State John Kerry.