Algerian President Abdelaziz Bouteflika will resign before the end of his term, a statement issued by the Algerian presidency said on Monday.
Bouteflika's fourth term ends on April 28 as mass protests continue in Algeria against his candidacy for a fifth term.
"Bouteflika will continue to make important decisions during the transitional period after his resignation," the presidential statement added.
The veteran leader, who has rarely been seen in public since suffering a stroke in 2013, said last month he would pull out of the race but postponed elections which were due in April.
The concession has done little to halt public ire and hundreds of thousands of people took to the streets of the capital Algiers on Friday demanding the president and his entourage go.