Australia's Kevin Rudd Quits Amid 'Soap Opera'

Australia's foreign minister Kevin Rudd has resigned, saying he was unable to continue his role without prime minister Julia Gillard's support - paving the way for a challenge to her leadership.

As speculation grew that he would be sacked by the prime minister, Mr Rudd told reporters at a dramatic midnight news conference in Washington DC that the only honourable course of action was for him to step down.

"The simple truth is that I cannot continue to serve as foreign minister if I don't have prime minister Gillard's support," he said.

Australia's Labor government has been torn by speculation about whether Mr Rudd, who Ms Gillard suddenly ousted as a prime minister in mid-2010 but who remains popular with voters, would mount a bid to return to the top job.

It is understood a furious Mr Rudd has been considering stepping down for a number of days.

Ms Gillard has said the move is disappointing.

He said he will fly back to Australia shortly, where he will speak to his family, friends and colleagues before making his next move.

"I will then make a full statement to the Australian people on my future before parliament resumes next Monday," he said at the news conference at which he declined to take questions.

Effectively, he must decide to either begin a leadership bid immediately, remain on the backbenches or wait until a point in the future to challenge Ms Gillard's position.

Mr Rudd said the leadership speculation had become a "soap opera" which was a distraction from the real business of government.

Attacking the "faceless men" in Australian politics, a reference to the factional leaders of the Labor Party who backed his ousting, he said: "Australia must be governed by the people, not by the factions."

Making reference to his ousting as prime minister in 2010, he said there should never be a "stealth attack" on a sitting prime minister elected by the people.

"We all know that what happened then was wrong and must never happen again," Mr Rudd said.

Earlier, the Australian newspaper reported that Ms Gillard was confident she had the numbers among Labor MPs to hold on to leadership and would call a ballot on Tuesday to force Mr Rudd to put his hand up.

If he lost the ballot, Mr Rudd would be immediately sacked as foreign minister by Ms Gillard and moved to the backbench, it said.

The prime minister refused to comment on the report, saying she had already answered many questions about the leadership and telling reporters: "I really don't have much to add."

Labor has been wracked by internal divisions as Ms Gillard struggles against unpopular policies and miserable polling that suggest the party would be unceremoniously dumped if an election was held tomorrow.

Tensions have mounted in recent days - a video of Mr Rudd uttering expletives while trying to record a message in Mandarin was posted anonymously on YouTube - turning the leadership speculation into what many regard as a farce.

Labor figures have called for an end to the constant speculation, with some saying there was no room in the Cabinet for both Mr Rudd and Ms Gillard.

Following his resignation Mr Rudd's daughter Jessica immediately tweeted: "Effing proud of you, Dad xxxx". His wife Therese Rein responded: "Me too, Kevin xxxx".

Known for his famous temper Mr Rudd became prime minister in 2007, after a landslide electoral win that ended more than a decade of conservative rule.

Despite his dumping as prime minister Mr Rudd remains popular with voters, consistently coming out on top as preferred leader ahead of Ms Gillard who is struggling in the polls, with elections due in 2013.