The "unexpected" resignation was due to Deputy Prime Minister Mohammad Mustafa, in charge of the economy, "interfering in Prime Minister's authority", the office said. Mustafa, who leads Palestine Investment Fund, has yet to comment on the issue.
Hamdallah's resignation has not yet been officially accepted.
Hamdallah had been installed 18 days ago by a motion of confidence as Prime Minister to lead a three-month interim government of the Palestinian National Authority in West Bank until an agreement could be reached between Hamas and Fatah.
Palestinian National Authority renamed itself as the State of Palestine after the latter gained recognition from the United Nations (UN) as an observer state last year.
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