Gordon Brown has announced that he will quit as Labour leader and revealed that Nick Clegg has requested formal talks with his party over a future Government.

Mr Brown said he was asking the Labour Party to call a leadership election in which he would play no part. He said he hoped the new leader would be in place in time for the autumn party conference.

He also said he was to press ahead with "formal discussions" with the Liberal Democrats after the request from Mr Clegg.

In a statement in Downing Street, Mr Brown said it was "sensible and in the national interest" to respond positively to the request.

He said the Cabinet would meet soon and a "formal policy negotiation process" would be established.

The Prime Minister added: "But I have no desire to stay in my position longer than is needed to ensure the path to economic growth is assured and the process of political reform we have agreed moves forward quickly."