Tunisia's Islamist Prime Minister Ali Larayedh will resign on Thursday, handing power to a caretaker administration in a deal with opponents to put the country's transition to democracy back on track, the state news agency said.

"The prime minister ... has declared he will hand his resignation to the president on Thursday afternoon," said a statement from the president's office according to state news agency TAP.

Three years after an uprising against autocrat Zine el-Abidine Ben Ali, Tunisia is in the final stages of establishing a full democracy that would be a rare bright spot in an unstable region. - Reuters