Iraqi President Barham Salih announced the resignation of his prime minister Adel Abdul Mahdi on the condition his departure does not leave a "constitutional vacuum" and a replacement is found.
In an televised address to the nation, Mr Salih said Mr Abdul Mahdi had agreed to submit his resignation.
"The prime minister had previously agreed to submit his resignation, if the blocs agree on an acceptable replacement in order to adhere to constitutional and legal frameworks," Mr Salih said.
The protests in Iraq, along with sustained rallies that removed the prime minister of Lebanon, pose a particular challenge to Iran, which will want to protect the significant political power it wields in both countries.
The unrest was the biggest test of Abdul-Mahdi’s short premiership, with 250 people killed, according to a count by the Associated Press, and thousands wounded in clashes in Baghdad and other cities after taking to the streets angered over unemployment, government corruption and a lack of basic services.