The Yemeni government and Shia Houthi rebels have signed an agreement aimed at ending the political crisis which has gripped the country for weeks.
It comes hours after the prime minister quit amid clashes between rebels and pro-government forces in the capital.
Under the deal, the Houthis and southern separatists will nominate a new prime minister within three days.
Scores of people have died and hundreds fled as clashes escalated in Sanaa over the past four days.
On Sunday the rebels said they had taken over government headquarters, key ministries and state broadcasters.
As the fighting intensified, Mohammed Basindwa said he would resign in order to clear the way for the agreement between the rebels and President Abdrabbuh Mansour Hadi.
President Hadi had earlier described the rebel offensive as a “coup attempt”.
Yemen has remained unstable since an outbreak of anti-government protests in 2011, which forced the then-President Ali Abdallah Saleh from office. Mr Basindwa became PM in the government that succeeded Mr Saleh.
The Houthis, based in Yemen’s mountainous north, have been advancing on the capital for weeks, skirmishing with rivals and organising mass protests calling for greater rights.
The Houthis, who belong to the minority Zaidi Shia community, have staged periodic uprisings since 2004 to win greater autonomy for their northern heartland of Saada province.
They consolidated control over Saada during the 2011 uprising and since July have inflicted defeats on tribal and militia groups backed by Islah, in neighbouring Amran province.
They consolidated control over Saada during the 2011 uprising and since July have inflicted defeats on tribal and militia groups backed by Islah, in neighbouring Amran province.
More recently they have demanded the president reverse a decision to cut fuel subsidies and replace the government.
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Source: BBC