Prime Minister Algirdas Brazauskas said his government could not function

The Labour Party is said to have pulled out after President Valdas Adamkus said he did not trust two of its ministers.

They are being investigated over allegations of illegal party financing.

Mr Brazauskas, a Social Democrat, announced his resignation, saying he could "not see any possibility of continuing his work".

The Lithuanian government has been without a parliamentary majority since April when another party, the New Union, withdrew from the cabinet.