Australia opposition leader quits

The leader of the main opposition party in Australia has resigned after support for his leadership collapsed.

After a "sleepless night", Simon Crean said he decided to step down because party members had lost confidence in his ability to win the next election.

He said the new party leader would be elected by Labor's 92 MPs on Tuesday.

Prime Minister John Howard has maintained his popularity over Mr Crean, buoyed by tough domestic and foreign policies and a healthy economy.

Mr Howard has been trouncing Mr Crean in opinion polls

"It's been a pretty sleepless night, but when I got up this morning I decided to call a ballot for the leadership of the Labor Party at next Tuesday's caucus meeting and I won't be a candidate for the leadership," an emotional Mr Crean told reporters.

"It's become obvious to me that I no longer have the confidence of the leadership group and the majority of my shadow ministry, and in those circumstances I propose to relinquish the position in the best interests of the great party that we all serve," he said.

It is only five months since Mr Crean beat off a leadership challenge from former leader Kim Beazley, who said on Friday that he would be standing for the leadership once again.

Mr Beazley led Labor to successive defeats by the conservative Liberal-National coalition under Prime Minister John Howard in 1998 and 2001.

Those expected to join him in the leadership race include treasury spokesman Mark Latham and possibly foreign affairs spokesman Kevin Rudd.

Mr Crean said he wished the next Labor leader luck.

"No-one will be happier than me when my successor becomes prime minister of Australia," he said.

Mr Crean, a former union member, spent two rocky years at the top after serving as deputy to Mr Beazley for three years.

A few weeks ago, polls showed support for him as a preferred prime minister at an all-time low of 16%, compared to 60% for Mr Howard.