Palestinian Prime Minister Salaam Fayyad officially resigned on Saturday, according to the official Palestinian news agency Wafa.

President Mahmoud Abbas met with Fayyad late in the day Saturday to accept the resignation; however, Fayyad will serve in his post until Abbas fills the position.

According to Associated Press, Abbas and Fayyad had been locked in an "increasingly bitter dispute" over how the government was being run. Fayyad offered his resignation on Thursday, but Abbas did not respond to Fayyad's offer until Saturday.

Reuters reports:

Palestinian President Mahmoud Abbas accepted the resignation of Prime Minister Salam Fayyad on Saturday, the official Palestinian news agency said.

Fayyad had offered his resignation in a letter to Abbas following weeks of sparring over Fayyad's handling of the government and an economic crisis afflicting the Israeli-occupied West Bank.

"The president told Dr. Salam Fayyad he accepted his resignation, and asked him to conduct the work of the government until a new government is formed," official news agency WAFA said.

Fayyad has served since mid-2007 as prime minister of the Palestinian Authority.

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