Olmert, who is under a cloud from a criminal investigation of his personal finances, hand-delivered his letter of resignation to President Shimon Peres, Ynetnews.com reported.

"I would like to take this opportunity to thank the prime minister for his contribution to the people and the country and for many years of public service," Peres said afterward.

There had been some question as to whether Olmert would resign Sunday or wait until Peres's trip Monday to the opening of the new United Nations General Assembly.

Olmert's government Sunday shifted to a transitional phase as Livini, who was recently elected the head of the Kadima Party, can pull a new coalition government together and then schedule a national election.