Gordon Brown has said he is quitting as leader of the Labour Party in the UK as he revealed that Nick Clegg had requested formal talks with his party over a future government.

Mr Brown said he was asking the Labour Party to call a leadership election in which he would play no part.

He said he hoped the new leader would be in place in time for the autumn party conference.

He also said he was to press ahead with "formal discussions" with the Liberal Democrats after the request from Mr Clegg.

In a statement in Downing Street, Mr Brown said it was "sensible and in the national interest" to respond positively to the request.

He said the Cabinet would meet soon and a "formal policy negotiation process" would be established.

The Prime Minister said: "The reason that we have a hung parliament is that no single party and no single leader was able to win the full support of the country.

"As leader of my party I must accept that as a judgment on me. I therefore intend to ask the Labour Party to set in train the processes needed for its own leadership election."

In a day of high drama at Westminster after it first appeared that the Liberal Democrats were close to agreement with the Tories about a power-sharing deal, Mr Brown said his aim was to ensure a "stable, strong and principled government" was formed.

Mr Brown said: "Mr Clegg has just informed me that while he intends to continue his dialogue that he has begun with the Conservatives, he now wishes also to take forward formal discussions with the Labour Party.