Prime Minister Julia Gillard is planning to call a leadership spill following the resignation of former foreign minister Kevin Rudd today.
Mr Rudd announced that he was quitting during a late-night press conference in Washington.
He said resigning was the "only honourable course of action" after losing the confidence of Prime Minister Julia Gillard amid continued speculation about a leadership spill.
"The simple truth is that I cannot continue to serve as foreign minister if I do not have the Prime Minister's support," he said.
"I am sad because I love this job."
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In a response statement tonight Ms Gillard described Mr Rudd as "a strong and effective advocate for Australia’s interests overseas".
"During his period of service as Foreign Minister there were many achievements," she said.
"He strongly pursued Australia's interests in the world."
"I am disappointed that the concerns Mr Rudd has publicly expressed this evening were never personally raised with me, nor did he contact me to discuss his resignation prior to his decision.
"I plan to hold a press conference tomorrow to make a further statement."
It's understood Ms Gillard plans to announce at the press conference that a leadership spill will take place on Monday.
During his press conference, Mr Rudd said resigning was the "only honourable course of action" and added that he is doing so with a "genuinely heavy heart".
Nine News political editor Laurie Oakes said Mr Rudd jumped before he was pushed, claiming Ms Gillard had planned to sack him before parliament resumed on Monday.
The former PM cited attacks from frontbencher Simon Crean and other politicians as a sign of his lack of support from Gillard.
"Mr Crean and a number of other faceless men have publicly attacked my integrity and my fitness and to serve in government," he said.
"When challenged today on these attacks, Ms Gillard chose not to repudiate them.
"I can only conclude that she shares these views."
In his resignation as foreign minister, Mr Rudd also pledged not to challenge Ms Gillard for the leadership.
"There is no way that I will ever be party to a stealth attack on a sitting prime minister elected by the people," he said.
"We all know what happened then was wrong, and it should never happen again.
"I regard this whole affair as little better than a soap opera, and I won't be part of it."
The former prime minister said the ongoing leadership saga was also damaging the business community and the re-election campaign of Queensland Premier Anna Bligh.
Mr Rudd will return to Brisbane on Friday and will make a full statement on his future before parliament resumes on Monday.
"Effing proud of you, Dad," his daughter Jessica tweeted afterwards.
His duties in Washington DC will now be carried out by US ambassador Kim Beazley, the man he ousted as Opposition Leader in 2007.
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