Syrian President Bashar al-Assad accepted the resignation of Mohammed Naji al-Otari's government on Tuesday, national media reported.
A new cabinet is expected to be named within 24 hours.
Assad is expected make an announcement that will "please the Syrian people" later on Tuesday, including the lifting of a state of emergency and political reform.
Thousands of Syrians marched earlier in the day toward central Damascus in a show of support for Assad.
The "loyalty to the nation" marchers carried flags and pictures of Assad, chanting: "We will give our blood and soul for you, Bashar."
The Syrian leadership pledged last week to implement economic and political reform in the country, where protesters have been demanding change since March 15.
Human rights groups say over 100 people were killed when security forces used live ammunition, tear gas, rubber bullets and water cannons to suppress an uprising in the southern city of Deraa.
A recent wave of unrest across North Africa and the Middle East has toppled authoritarian regimes in Tunisia and Egypt and sparked civil war in Libya. Popular protests have also reached Yemen, Bahrain and Algeria.
MOSCOW, March 29 (RIA Novosti)
