Israeli foreign minister Avigdor Lieberman has announced he is resigning a day after an indictment for breach of trust was filed against him by the country's attorney general.

Mr Lieberman's decision could throw the Israeli political system into upheaval a month ahead of elections.

Israel's attorney general indicted Mr Lieberman on Thursday for alleged breach of trust, but decided not to file a number of more serious charges in a fraud and money-laundering case.

"I have decided to resign from my position as foreign minister and deputy prime minister," Mr Lieberman wrote in a statement released by his office.

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