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Four days after Britain's general election which saw his Labor party decisively defeated, Prime Minister Gordon Brown announced on Monday afternoon that he would stand aside, so that talks on coalition could formally open between his party and the third party in British politics, the Liberal Democrats.

British Prime Minister Gordon Brown announces on Monday afternoon in front of his official residence that he will resign as Labour Party leader and his party will hold formal talks with Lib Dems. [Xinhua]

However, Brown gave no date for his departure, only saying that he hoped a new Labor party leader would be chosen by September. Nor did he make clear if his agreement to go was a pre-condition forced on him by the Liberal Democrats.

In the meantime, he remains British prime minister.

Separately the Liberal Democrats said on Monday afternoon that they were opening formal discussions with Labor over coalition.

And Liberal Democrat leader Nick Clegg welcomed Brown's resignation. He said: "Gordon Brown has made an important announcement today. It must have been a very difficult thing for him to say personally but I think he has taken it in the national interest and I think his announcement could be an important element in the smooth transition towards a stable government that people deserve, without of course prejudice and without predicting what the outcome of the talks will be between ourselves and Labor. "

British General elections

Monday's surprise developments are a clear setback to the hopes of the Conservative party, which had moved close to reaching an agreement with the Liberal Democrats, of taking power.

Since the result of the general election was known last Friday the Conservative party has moved at lightning speed to form an agreement with the Liberal Democrats.

Monday morning saw a resumption of talks between high-ranking negotiators from both sides, who had met on Saturday and Sunday.

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