Hariri, right, announced his decision in a meeting with Michel Suleiman, the president, left [AFP]

Hariri resigned on Thursday, two days after opposition groups in parliament rejected his proposed cabinet.

"I announce to all Lebanese that I told President Suleiman today that I will step down from forming a government, in the hope that this decision will be for the benefit of Lebanon," Hariri said after a meeting with Michel Suleiman, the president.

The March 14 alliance leader has been trying to broker a consensus over the distribution of the country's 30 ministerial posts since June.

Hariri said that the conditions set by the Hezbollah-led bloc sought to undermine the election, which his Western-backed coalition had won.

Under Hariri's proposal, his alliance would have had 15 seats in the cabinet, the Hezbollah-led minority would have had 10, and Suleiman would pick the remaining five.

However, the opposition dismissed the make up and put forward an alternative.

Contentious points

Paul Salem, director of the Middle East Centre at the Carnegie Endowment for International Peace, said: "We have to read this resignation as part of a very tough bargaining process between the majority led by Saad Hariri and the opposition, which includes Hezbollah and the movement led by Michel Aoun.

"Lebanon's political bargaining is always very complex and fairly arcane. It's always difficult to form a government.

"But the resignation of Hariri raises the issue of government formation in Lebanon to an international platform and with some regional diplomacy, it can be brought back on track."

One of the most contentious points during the negotiations was the demand
by Hezbollah and its allies that Jibran Bassil, of the Hezbollah-ally Christian Free Patriotic Movement, stay on as communication minister.

Hariri rejected this, reportedly choosing a politician closer to his own bloc for the post, Ghazi Aridi of the Progressive Socialist party, lead by Druze politician Walid Jumblatt.

Suleiman is now expected to hold consultations with MPs to select a new prime minister, but with the March 14 alliance holding the majority in parliament, Hariri's mandate could simply be renewed.

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