Algerian Prime Minister Abdelaziz Djerad resigned on Thursday, opening the door for President Abdelmadjid Tebboune to name a new cabinet, state TV said.
A new government will have to tackle a deep financial and economic crisis due to a fall in oil prices.
Djerad’s resignation follows a parliamentary election on June 12 that was marked by a low turnout and no majority winner after two years of mass protests and political turmoil.
The military-dominated establishment believes replacing the parliament and constitution is the best way to end the biggest crisis in decade, a source said. The Hirak protest movement is demanding an uprooting of the entire system.
Algeria remains an important gas supplier to southern European countries, and is a U.S. partner in the fight against Islamist extremists in the region.