Fatmir Sejdiu, Kosovo's president, has resigned following a constitutional court ruling last week that he cannot serve as head of state and leader of his political party concurrently.
Sejdiu said on Monday that while he did not feel he violated the constitution, the court "thought otherwise.''
Kosovo's president is elected by parliament and has a mainly ceremonial role.
However, analysts said that the president's resignation could destabilise the fragile political scene ahead of upcoming talks between the former Serbian province and Belgrade.
Sejdiu said his decision has been taken to "respect to the institutions and the decisions taken by them.''
Sejdiu, a 58-year-old former law professor, was elected president for the second time in 2008. He also continued to lead the Democratic League of Kosovo (LDK), the second largest party and junior coalition partner in Hashim Thaci, the prime minister's government.
The ruling comes amid a leadership challenge in the party before general elections scheduled for next year.