Cypriot Finance Minister Michalis Sarris resigned on Tuesday, saying one of the reasons was that he had been chairman of Laiki Bank, whose failure was a major contributor to the island's near financial meltdown.
His resignation was accepted by President Nicos Anastasiades, presidential spokesman Christos Stylianides said.
Earlier on Tuesday, the government launched a judicial probe into how the island was pushed to the verge of bankruptcy before having to agree a crippling eurozone bailout.
For its part, the Phileleftheros newspaper's website reported that he had quit and was to be replaced by Labour Minister Haris Georgiades.
Georgiades's former job is to be taken by commerce ministry civil servant Zeta Emilianidou, the report added.