Finance Minister Tun Daim Zainuddin has resigned effective June 1, Prime Minister Dr Mahathir Mohamad confirmed today.

Mahathir said Daim tendered his resignation letter to him yesterday, reported national news agency Bernama.

Daim, 63, who has been on a two-month leave since April, is also believed to have relinquished his position as the Umno treasurer as well, with no reason given.

There had been intense speculations that his sudden decision to take a break would lead to his resignation.

Mahathir was quoted as saying, "Two months ago he asked to resign but I told him to go on leave first and reconsider his decision."

Asked whether Daim's intention to resign was discussed in cabinet, he said: "This is not a cabinet matter. The cabinet did not discuss, I'm the only one."

About about Daim's successor, Mahathir said he had not thought about it yet. Jokingly he added: "If anyone wants (the job)..."

Asked whether he accepted the resignation, Mahathir said: "I accept...he asked 10 months ago."

Daim was finance minister from 1984-91 before resigning to return to a business career.

He returned to the cabinet in June 1998 as special functions minister - to promote economic recovery amid the regional financial crisis - a role that appeared to undermine that of Anwar Ibrahim who was finance minister and deputy premier then.

In January 1999 Daim was appointed finance minister following the sacking of Anwar.