Italian Prime Minister Matteo Renzi has formally resigned, three days after losing a key referendum on constitutional reform.

Mr Renzi had intended to stand down from office immediately after his defeat on Sunday, but agreed to delay his resignation after a personal plea from Italian President Sergio Mattarella.

In a statement, Mr Mattarella's office said that Mr Renzi has been asked to stay on as caretaker prime minister while consultations are held with political parties.

Following the consultations, which will begin on Thursday evening, Mr Mattarella is widely expected to ask a member of Mr Renzi's cabinet, or a politician from his Democratic Party, to try to form a new government.

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Elections are due in 2018, but many politicians are calling for them to be held earlier.


Before formally tendering his resignation to the president, Mr Renzi chaired a meeting of the executive of his centre-left Democratic Party (PD).

Referencing the clamour for early elections, he said: "We are not afraid of anything or anybody, if other parties want to go to the polls ... the PD is not afraid of democracy or elections."

Following the talks, Mr Renzi told reporters he would spend Thursday with his family, adding: "Hopefully tomorrow I will have more luck in the PlayStation battle with my sons than I have had here."

Mr Renzi, 41, had staked his future on constitutional reform, which was aimed at streamlining Italy's notoriously lengthy legislative process by weakening the powers of the upper house, cutting down the number of senators and limiting the powers of regional authorities.

His opponents denounced the reforms as dangerous for democracy and saw a chance to topple his government after almost three years.

Image: The referendum result was hailed as a 'victory for democracy' by Five Star leader Beppe Grillo

Mr Renzi, who came to power in 2014, said he took full responsibility for the "extraordinarily clear" defeat, with the final count showing the "No" camp winning 59.1% to 40.9%.

Spearheaded by the populist Five Star Movement, the "No" campaign took advantage of Mr Renzi's declining popularity, a struggling economy and concerns caused by tens of thousands of migrants arriving from Africa.

Five Star leader Beppe Grillo called the result a "victory for democracy".