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Friday's Israel (and Beyond) Live: A Quiet "Freeze" on Settlement Expansion?
"Fayyad met Abbas for half an hour in the president's headquarters in Ramallah in the West Bank and officially handed him his written resignation," a Palestinian official said.
Abbas tasked Fayyad with the role of caretaker for the current government until a new Prime Minister is appointed, another official said.
Late Friday, US Secretary of State John Kerry telephoned Abbas to press him to find common ground with his prime minister over economic policies, Palestinian officials said.
A senior Palestinian official said Fayyad had had his letter of resignation prepared since 23 March but put off submitting it because of a visit to Israel and Palestine by US President Barack Obama and Abbas's overseas trips.