Palestinian President Mahmoud Abbas accepted the resignation of Prime Minister Mohammad Shtayyeh, a statement by the presidency said.
Abbas issued a decree accepting the resignation and assigned Shtayyeh's government to continue "temporarily until a new government is formed," the statement said.
Earlier on Monday, Shtayyeh said he was resigning in a bid to allow Palestinians to form a broad consensus about political arrangements amid Israel's war against Hamas, a Palestinian militant group, in Gaza.
The US has been pressuring Abbas to shake up the Palestinian Authority, which rules parts of the occupied West Bank. The Palestinian Authority lost control over the Gaza Strip following a struggle with Hamas in 2007.
Hamas is considered a terrorist organization by the European Union, the United States, and Israel.