Enrico Letta
© REUTERS/Susana Vera
Italian Prime Minister Enrico Letta has announced his resignation after the leader of his centre-left party, Matteo Renzi, pulled his support for the government.

On Thursday, Letta issued a statement saying he will tender his resignation to President Giorgio Napolitano on Friday at the Quirinale palace.

Letta's decision to quit came after the Democratic Party (PD), the largest party in the ruling coalition, supported a call by Renzi, the party leader and mayor of Florence, for a new government capable of opening "a new phase" of reform and pulling the economy "out of the quagmire."

"Italy cannot live in a situation of uncertainty and instability. We are at a crossroads," Renzi told a meeting of the PD's 140-strong leadership committee on Thursday.

Renzi, 39, has been criticizing the premier for failing to act aggressively enough to combat Italy's protracted economic downturn.

Napolitano is expected to accept Letta's resignation and then call on Renzi to form a new administration.