Hosni Mubarak has stood down as President of Egypt handing control of the country over to the military.
Mubarak's deputy, Omar Suleiman, made the announcement in an address to the nation on state television.
“In these difficult circumstances that the country is passing through, President Hosni Mubarak has decided to leave the position of the presidency” the Vice President said.
“He has commissioned the armed forces council to direct the issues of the state.”
The announcement came as hundreds of thousands of Egyptians massed in the capital Cairo and other major cities demanding the President's resignation.
According to a ruling party spokesperson Mr Muburak had left Cairo earlier today for the Red Sea resort of Sharm El Sheikh where there is a presidential residence.
The announement was greeted with jubilation on the streets of Cairo, car horns sounded and protestors waved flags and chanted: "The people have brought down the regime."
The embattled leader's 30-year reign was brought to an end by more than two weeks of intense demonstrations by anti-government protesters.
Just last night Mr Mubarak had infuriated protestors by reaffirming his intentions to stay on as President until elections take place in September.
Last night's announcement only served to fan the flames of the protest with larger numbers turning out across the country today.