Russian prime minister Dmitry Medvedev has submitted his resignation to President Vladimir Putin, media reported.
Russian news agencies said Mr Putin thanked Mr Medvedev for his service but noted that the prime minister’s Cabinet failed to fulfil all the objectives set for it.
Mr Putin plans to name Mr Medvedev as deputy of the presidential security council, reports said.
Mr Medvedev, a long-time close associate of Mr Putin’s, has served as Russia’s prime minister since 2012.
He spent four years before that as president in 2008-2012.
Mr Putin asked the member’s of Mr Medvedev’s Cabinet to keep working until a new cabinet is formed.
Mr Medvedev’s resignation followed Mr Putin’s annual state of the nation address earlier on Wednesday.
During his speech, the Russian leader proposed amending the constitution to increase the powers of prime ministers and cabinet members.
The proposed move is seen as part of Mr Putin’s efforts to carve out a new position of power for himself to stay at the helm after his current term as president ends in 2024.