June 26, 14:46 GMT
BBC - Pakistan's Prime Minister Zafarullah Khan Jamali has resigned following a meeting with President Pervez Musharraf, officials have confirmed.
Update: Jamali Says no one has asked him to resign
Islamabad | June 26
HiPakistan - Prime Minister Mir Zafarullah Khan Jamali on Friday termed news about his resignation baseless, concocted and malicious.
ed: hat tip candy
Reports of the resignation first emerged from senior officials, after a meeting between the two leaders.
The BBC's Zaffar Abbas in Islamabad says credible sources claim Mr Jamali bowed to the president's insistence that he make way for a new leader.
A replacement from the ruling Muslim League party may be named within hours.
The change of prime minister came on the eve of new talks between India and Pakistan over the disputed territory of Kashmir - the first meeting between the neighbours on the issue for three years.
Party meeting
In recent weeks there has been mounting speculation in the Pakistani press over the future of the prime minister.
Newspapers predicted Mr Jamali could go as a result of a power struggle within the governing Pakistan Muslim League.
Pakistan's Information Minister Sheikh Rashid Ahmed told the BBC the situation would become clear after a meeting of the parliamentary caucus of the Muslim League on Saturday night.
Our correspondent says reports about differences within the governing party have been circulating in the country for several weeks.
It was being said, he adds, that the party's president, Chaudry Shujat Hussain, was not pleased with Mr Jamali's working and had asked President Musharraf to either sack him or persuade him to step down.
'Political differences'
There was speculation that relations between the president and the prime minister had deteriorated over Mr Jamali's alleged failure to endorse Mr Musharraf's policies fully.
Mr Jamali had however, on several occasions, strongly denied the allegations.
He was appointed less than two years ago following general elections after the military coup led by Mr Musharraf in 1999.
Pakistan's Foreign Minister, Riaz Khokhar, meanwhile arrived in India on Saturday for talks on the disputed territory of Kashmir with his Indian counterpart, Shashank.
It will be the first time in three years that India and Pakistan have discussed the issue and follows a series of confidence-building measures between the two sides.
The nuclear-armed rivals have fought two of their three wars over Kashmir since independence in 1947.