First Minister Hamza Yusuf, leader of the ruling Scottish National Party (SNP) in Scotland, announced his resignation after ending a power-sharing deal with the Greens.
The politician, who replaced Nicola Sturgeon as SNP leader and first minister for nearly a year, said it was "time" for someone else to lead the government.
The decision to end the deal comes as the SNP was rocked by news earlier this month that Sturgeon's husband Peter Murrell had been accused of embezzlement in an investigation into the party's finances.
The resignation also paves the way for the opposition Labour Party to regain ground in the Scottish heartlands in the UK elections expected this year.
The SNP has been in power in Scotland for 17 years. But recent opinion polls suggest that Labour has overtaken the SNP for the first time in a decade.
This rise is interpreted as a sign that British Prime Minister Rishi Sunak's Conservative Party, which is far behind the Labor Party across the UK, is also losing its chances of winning the elections.
If the Scottish Parliament fails to elect a new prime minister within 28 days, the country will go to early elections.
Former SNP leaders John Swinney and Kate Forbes are expected to compete to replace Yusuf, Scotland's first Muslim first minister.
