Speaking on Monday, Mr Starmer said he accepts "with good grace' that he is not best person to lead Labour into next election". Mr Starmer will remain as prime minister until a new Labour leader is appointed. 

He said: "The question my party is asking now is whether I am best placed to lead us into the next general election.

"I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace.

"Every decision I’ve taken has been about putting the country I love first. That is why I will resign as leader of the Labour party.

"I have spoken to His Majesty the King this morning to inform him of my decision."

The decision to stand down means Labour will now hold a contest to choose his successor, with Mr Burnham seen as the frontrunner.

The former Greater Manchester mayor is expected to arrive in Westminster to be sworn in as an MP on Monday afternoon after winning the Makerfield by-election.

Former health secretary Wes Streeting is also expected to put himself forward as a candidate.

Mr Starmer will remain as prime minister until a successor is appointed.

He said: "I will ask the national executive committee of the Labour party to set out a timetable, with nominations opening on the 9th of July and completed by the summer recess.

"In the case of a contest, this will ensure a new leader is in place before parliament returns in September.

"I will remain in post as prime minister until the contest is complete, and I will do everything I can to ensure an orderly handover of power."

More to follow...