Central African Republic's interim President Michel Djotodia has resigned at an Economic Community of Central African States (CEEAC) regional summit in N'Djamena, capital of Chad.
The announcement was made on Friday by Ahmat Allami, the secretary-general of the regional bloc of Central African states.
PM Nicolas Tiengaye also resigned.
The resignation comes after Djotodia, CAR's first Muslim leader, faced pressure to step down at the (CEEAC) meeting in Chad.
Djotodia was considered by many as incapable of leading the country having been unable to put a halt to the bloodshed that has resulted in the deaths of at least 1,000 civilians and uprooted nearly a million people.
"If you are incapable, if you are powerless in the face of the situation, make way for others who can do a better job," CEEAC secretary-general Ahmat Allami explained.
Djotodia responded by saying no one could solve Central African Republic's myriad of problems in just eight months.
"I am not God, I hope. I am a man like you. And this country is vast -- 623,000 square kilometres (387,000 square miles)," he told reporters. "You could bring an angel from the sky to govern this country and there would still be problems."
Djotodia became CAR's president after a coup d'état by the Muslim Seleka group last March.
The national transitional council led by Alexandre Ferdinand Nguendet now has 15 days to choose another interim president.
The country has been gripped by sectarian violence between the Muslim Seleka and Christian Anti Bakala groups ever since president Francois Bozize was overthrown early last year.
European Union officials have recommended deploying an EU military force to the conflict-ridden Central African Republic.
France has already deployed 1,600 troops and has urged other European countries to do the same, amid government struggles and violent retaliations.
Many villages are deserted and in the last month the number of those who have fled their homes has doubled - including almost half of those living in the capital Bangui.
The UN has recently warned that the CAR conflict could end in genocide; some 2.2 million people are in need of humanitarian assistance.
Amnesty International has called for international intervention as crimes against humanity including extrajudicial executions and mutilations of bodies are being committed throughout the country.