The move comes after months of plunging polls and internal division within the Liberal Party of Canada, with members of his party calling for Trudeau to step aside ahead of the next election.

Addressing reporters in Ottawa, Trudeau announced, “I intend to resign as party leader, as prime minister, after the party selects its next leader,”

“It has become clear to me that if I’m having to fight internal battles, I cannot be the best option in that election.”

“My whole being has always told me to fight because I care deeply about Canadians… But I've come to realize that I'm not the best option for the upcoming elections.”

The Canadian PM spent the holiday break considering his future, and said he made his decision over dinner with his family.

After more than nine years in power, Trudeau’s support within the Liberal Party began teetering last year, following months of public dissatisfaction over issues like inflation and the high cost of living.

The Canadian Parliament will remain prorogued until March 26, providing the party with time to appoint a new leader.

Canadian media have tipped Trudeau’s former finance minister and deputy prime minister Chrystia Freeland as a possible contender to take over the Liberal Party.

In December, Freeland penned a scathing resignation letter accusing Trudeau of focusing on political gimmicks to appease voters, instead of steadying Canada’s finances ahead of Mr Trump’s promised tariffs.

Trudeau says the Liberal leadership race will be “a robust, nationwide competitive process.”