Confusion reigned in Iceland on Tuesday as Icelandic Prime Minister Sigmundur Davíð Gunnlaugsson had reportedly said he would resign from his position, according to Icelandic news outlets. But on Tuesday evening, Gunnlaugsson denied he was stepping down.

Gunnlaugsson held a meeting with ministers Tuesday afternoon and reportedly said he would be resigning his role. The Minister of Agriculture and Fishing Sigurður Ingi Jóhannsson told RÚV that Gunnlaugsson has resigned as the prime minister but needs the approval of the Independence Party, and the president, before it's official.

Gunnlaugsson said he will continue as the chairman of the centre-right Progressive Party named Jóhansson prime minister.



However, President Ólafur Ragnar Grímsson said earlier in the day that he won't accept the resignation just yet.

Gunnlaugsson and his wife reportedly to have set up a company in the British Virgin Islands to evade taxes, which was revealed in the massive Panama Papers leak over the weekend.

Gunnlaugsson was spotted running out of the parliament building while refusing to speak with reporters.

SEE ALSO: Icelanders are throwing yogurt at Parliament over the Panama Papers

He is one of dozens of world leaders and elites implicated in the Panama Papers — a trove of incriminating documents from one Panamanian law firm that helped foreigners with tax evasion.

President Grímsson said he refused the PM permission to dissolve the government until meeting with other party leaders after the pair met on Tuesday afternoon.

The prime minister earlier denied doing anything illegal and says all taxes were paid.

The Icelandic PM resigned today - people are still demonstrating - demanding elections #panamapapers #cashljós #helvitisfökkingfokk A photo posted by Hans-Olav, Reykjavik (@solavander) on Apr 5, 2016 at 11:33am PDT

But in a statement released on Tuesday morning on his Facebook page, Gunnlaugsson said he had met with the head of the Independence party, which is a coalition partner with his government.

"I am proud of my work in politics and not afraid to put them in the verdict of the electorate."

"We discussed the performance of the government and the importance of completing large projects which have been prepared in the past months and years. Many of them are extremely important for Icelandic society," wrote Gunnlaugsson, who said he would like the time to continue to work on several planned initiatives.

But he made it clear that he was willing to allow Icelanders to go to the polls if necessary.

"I am proud of my work in politics and not afraid to put them in the verdict of the electorate whether it will be done now or later," Gunnlaugsson said in the statement.

But on Tuesday night, Gunnlaugsson released a new statement that declared, "The Prime Minister has not resigned and will continue to serve as Chairman of the Progressive Party."

In addition, the statement claims Gunnlaugsson has asked the party Vice-Chairman to take over the role of Prime Minister on a seemingly temporary basis, or, as stated in the release, "for an unspecified amount of time."

Here's the full email from Iceland's government PR claiming prime minister did not in fact resign pic.twitter.com/4bap04OZBY — Richard Milne (@rmilneNordic) April 5, 2016

What a bonkers day in Iceland. PM resigns, only for PR to claim he didn't. PM and president basically accuse each other of lying. And tmw? — Richard Milne (@rmilneNordic) April 5, 2016

Icelanders were enraged after the news broke that Gunnlaugsson was linked to the offshore businesses, and protests have gripped the capital of the small nation.

Thousands filled the square in front of Iceland’s Parliament on Monday evening, calling on the prime minister and his government to resign and hold new elections.

Protests are planned again for Tuesday evening by a several opposition groups that are seeking a new election. Hours after the news broke about the prime minister's resignation, crowds had already begun to gather in front of the parliament building.

Parliament was not in session Tuesday, but deliberations on the crisis are expected to resume later this week.

Additional information from the Associated Press.

Have something to add to this story? Share it in the comments.