Leo Varadkar has said his decision to step down as taoiseach was both “personal and political” and claimed he is no longer the “best person” to lead the country.
In an emotional announcement outside government buildings in Dublin, Mr Varadkar announced he was also quitting as leader of Fine Gael, which will be effective from Wednesday.
He will remain as taoiseach until a successor can be selected.
Tributes have been paid to Mr Varadkar, who had previously claimed he would not remain in politics past the age of 50.
The 45-year-old became the Republic’s youngest taoiseach in 2017, serving until 2020 and the general election that saw the formation of a new coalition government with Fine Gael, Fianna Fáil and the Green Party.
Through a rotation deal he served as tánaiste under Taoiseach Micheál Martin until December 2022, when he returned to the role of taoiseach.
“I believe this government can be re-elected and I believe my party, Fine Gael, can gain seats in the next poll,” he said in his announcement.
“Most of all I believe the re-election of this three-party government would be the right thing for the future of our country.”
He said: “After careful consideration and some soul searching, I believe that a new taoiseach and a new leader will be better placed than me to achieve that,” adding: “After seven years in office, I don’t feel I’m the best person for that job anymore.”
His announcement has triggered calls for a general election with Sinn Féin President Mary Lou McDonald saying Mr Varadkar should not “limp on in caretaker capacity”.
Sinn Féin’s Stormont First Minister Michelle O’Neill told reporters: “It’s not a time for a rearranging of the deckchairs,” adding: “Ultimately, it’s for the people to decide who will be the taoiseach.”
Meanwhile, DUP deputy First Minister Emma Little Pengelly wished Mr Varadkar well, stating she “did not always see eye-to-eye” with him.
Mr Varadkar’s stance during the Brexit era made him a hate figure for some within unionism.
DUP leader Sir Jeffrey Donaldson said he and Mr Varadkar “were very often on different ends of the political spectrum”.
“We differed on the Republic of Ireland’s approach to legacy, and sharply differed on his approach and attitude on the Protocol and the constitutional future of Northern Ireland. Where we differed we did so respectfully,” he said.
UUP leader Doug Beattie said Mr Varadkar’s announcement “has come as a surprise to us all”.
“We look forward to working with his successor in a constructive manner, fostering good relationships.”
Alliance leader Naomi Long said Mr Varadkar had “played his part in helping restore the Executive here twice and also contributed greatly to many challenges we have faced such as the fall-out of Brexit (and) the issue of legacy”.
SDLP leader Colum Eastwood said Mr Varadkar: “In all of my dealings with the taoiseach, I have found him to be direct, supportive and willing to do whatever he can to support the political process in the north. I sincerely wish him and Matt the very best for the future.”