Palestinian Prime Minister Rami Hamdallah's government submitted its resignation Tuesday to President Mahmoud Abbas.
A Cabinet statement said the members would continue serving until a new government is in place.
The move comes two days after the president's Fatah faction recommended the government be replaced.
Hamas, which governs the Gaza Strip, rejected the resignation, saying Abbas was trying to exclude it from Palestinian politics.
Hamas and the Palestinian Authority signed a reconciliation agreement two years ago, but continuing disputes between the two groups have prevented its implementation.