East Timor’s Xanana Gusmão has told colleagues he will resign as Prime Minister in the next fortnight. Mr Gusmão gathered most of his 55-member Government in a dinner on Wednesday night in the capital Dili where he outlined plans to step back in favour of a unity administration under a new leader.

One of the ministers who attended the dinner confirmed to Portuguese news agency Lusa the announcement made by Mr Gusmão.

Mr Gusmão declined to confirm whether or not he is resigning, telling Lusa that this is a time for “reflection”. “I’ll talk to the President,” said Mr Gusmão, adding that in the coming days he will address the nation.

The Prime Minister had flagged last year he intended to step down but has worked over recent months on a Government restructuring.

Mr Gusmão, who became East Timor’s first President in 2002, was elected Prime Minister in 2007.

He told his colleagues that about 20 ministers, vice ministers and secretaries of state would see their jobs paired back under the restructure, with new blood also introduced.

Minister of State Ágio Pereira confirmed in a media statement that Government members had been given letters outlining the restructuring plan.