Iraq's President Barham Salih says Prime Minister Adel Abdul-Mahdi has agreed to stand down if the right replacement can be found to avoid a constitutional vacuum.
That is after thousands of protesters returned to the streets, renewing their demands for reform.
They blame the government for corruption, unemployment and poor public services.
It follows demonstrations on Wednesday where one protester was killed and dozens were injured when security forces tried to disperse the crowds in Baghdad.
Thousands of people defied a curfew that came into place at midnight
Al Jazeera's Natasha Ghoneim reports from Baghdad's Tahrir Square.
