"The conference has just ended. The president has signed the resignation request," the presidential press service said following a meeting between Bakiyev and Prime Minister Felix Kulov.
Kulov said the resignation, submitted earlier on Tuesday, was prompted by an ongoing standoff between the Central Asia country's Cabinet and lawmakers following the adoption of a new Constitution last month, which provides for a new method of forming the Cabinet of Ministers.
"The decision was prompted by the difficult social and political situation in the country," Kulov said.
Kulov said 10 lawmakers submitted a letter to President Kurmanbek Bakiyev's administration and to the parliament, stating that "the current Cabinet and parliament are not legitimate."
The new Constitution, signed following a week-long opposition-led rally in the capital, Bishkek, which briefly turned violent, and based on a compromise agreement drafted by opposition and pro-government lawmakers, stipulates that the Cabinet is formed by a party, which wins parliamentary elections, and that the parliament is extended to 90 deputies from the current 75.
Under the Constitution, the president lost the right to dissolve parliament, and parliament gained the authority to appoint the prime minister and the Cabinet.
Bakiyev came to power in March 2005 on the back of the "tulip revolution" that ousted the country's first president Askar Akayev, but his rule has been marred by economic problems, high-profile murders, prison riots and disputes over the control of lucrative businesses.
Kulov said Kyrgyz lawmakers did not want to dissolve the parliament voluntarily, therefore the government decided to resign in a bid to speed up new parliamentary elections as a way out of the crisis.
Meanwhile, Bakiyev dismissed Tuesday the head of the country's Central Election Commission, Tuigunaaly Abdraimov, who earlier tendered his resignation.
Experts predict a political crisis following the Cabinet resignation, as the next parliamentary elections will be held in 2009.
However, Kyrgyzstan's State Secretary Adakhan Madumarov said President Bakiyev and the prime minister coordinate efforts to address the situation.
"The Kyrgyz president and the government are making coordinated efforts in one direction" he said. "We need to adjust everything in compliance with the new Constitution."
