It was not immediately clear who would succeed Jakobsdottir as prime minister, a job she has held since 2017.

"I have decided to ask to be released from the position of prime minister of Iceland and to stand in the upcoming presidential election," Jakobsdottir said in a video message according Morgunbladid.

(Reporting by Stine Jacobsen and Terje Solsvik, editing by Anna Ringstrom)