The Japanese government, led by Prime Minister Taro Aso, resigned at an emergency session of the country`s parliament, which began in Tokyo on Wednesday, according to RIA Novosti.
The center-left Democratic Party of Japan, led by Yukio Hatoyama, the grandson of former premier Ichiro Hatoyama, won a majority of 308 seats in the 480-seat lower house of parliament.
Until last month`s election victory, Taro Aso`s Liberal Democratic Party had maintained virtually unbroken power in Japan since 1955, apart from a brief 10-month break in 1993.
The party will elect the country`s 93rd prime minister at another session, which is due to begin at 4:00 GMT on Wednesday. Hatoyama is seen as the most likely candidate.
The make-up of the Cabinet will also be announced at the session.
Japan has been hard-hit by the global economic slowdown, with unemployment at a record high, sparking dissatisfaction with Aso`s government.
Hatoyama has pledged a range of ambitious spending proposals on healthcare and education, but analysts have warned that the plans could further escalate the country`s national debt.