British Prime Minister Gordon Brown will step down by September as part of a dramatic move to keep his Labour Party in power.
Gordon's party finished second to the Conservatives in the May 6 election, but with a new leader, the Labour Party may run the government with the Liberal Democrats, who finished a distant third.
"There is a progressive majority in Britain, and I believe it could be in the interests of the whole country to form a progressive coalition government," Brown said.
Brown said Liberal Democrat leader Nick Clegg had started talks with the Labour Party about an alliance. Clegg previously said Brown's departure would likely be a condition of any deal.
Currently, the British government operates under a "first past the post" voting system, in which the party that wins the majority of seats, rather than the majority of the overall votes, wins. Last week's results were inconclusive because the Conservatives won the most seats in the election, but fell 20 seats short of a majority.
The recent election now has critics pushing for an "alternative vote" system, in which voters order candidates by preference and second choice votes are given if no candidate wins 50 percent of the first preference votes.
Brown became prime minister in 2007 after 10 years in Britain's cabinet.
He said he must take responsibility for his party's poor showing in the elections.