Iceland's Prime Minister Sigmundur Gunnlaugsson delivers a speech during the opening session of the World Climate Change Conference 2015 (COP21) at Le Bourget, near Paris, France, in this November 30, 2015 file photo. [Photo/Agencies]

REYKJAVIK - Iceland's Prime Minister Sigmundur David Gunnlaugsson announced Tuesday he would resign during his party's parliamentary members meeting, local media reported.

After a meeting of Progressive Party parliamentary members, the current minister for fisheries and agriculture Sigurdur Ingi Johannsson told Iceland's national broadcaster RUV Gunnlaugsson would step down as prime minister, but remain as chairman of the party.

Johannsson will serve as the new prime minister, according to reports.

Gunnlaugsson's proposal was agreed by his party's parliamentary members during the meeting and will be submitted to the leaders of the Independence party, its political partner in this coalition government, later on Tuesday.

Thousands of angry Icelanders protested in front of the parliament building last night calling for the dismissal of the current government.