British Prime Minister Tony Blair announced today that he will resign as leader of the Labour Party on June 27, after more than a decade in power.

"Today I announce my decision to stand down from the leadership of the Labour Party," Blair told a crowd of supporters at his constituency of Sedgefield.

"I've been prime minister of this country for just over 10 years, in this job in the world of today I think that's long enough for me but more especially for the country."

The leader, who has won three successive majority governments, has seen his popularity plummet because of the war in Iraq. Almost 150 British soldiers have died since the conflict began.

"I ask you to accept one thing: Hand on heart -- I did what I thought was right," said Blair. "I may have been wrong, that's your call, but believe one thing if nothing else: I did what I thought was right for our country."

Blair said decision making is a difficult task as leader.

"Everyone always says in politics: 'Listen to the people,' and the problem is they don't always agree," Blair said, eliciting laughter.

"In government you have to give the answer -- not an answer, the answer."

During his tenure, Blair skillfully combined the Labour party's left-wing social policies with slightly right-wing economic principles.

"There is only one government since 1945 that can say all of the following: more jobs, fewer unemployed, better health and education results, lower crime and economic growth in every quarter," said Blair. "Only one government -- this one."

Earlier in the day, Blair met with cabinet ministers to discuss his resignation.

Former U.S. president Bill Clinton said he was thankful for Blair's years in office.

"Blair revitalized his party, modernized his country's economy and its approach to social problems, took the lead on global issues from climate change to debt relief to doubling aid to Africa, to the quest for peace in Northern Ireland and Kosovo, and started the global Third Way political movement," said Clinton.

Blair's successor

Blair's announcement ends months of speculation and opens the way for his likely successor Chancellor Gordon Brown.

Blair, who marked 10 years in power on May 1, had wished to remain as his party's leader until the next election, expected sometime before May 2010.

But Brown, whose political position is reminiscent of Paul Martin as he tried to wrestle control of the Liberal party from Jean Chretien, pushed for Blair to step down mid-term.

Brown has the support of more than half of his fellow Labour MPs, while only two backbenchers have said they will also make a bid for the leadership.

Blair first said he would serve only one more term on Sept. 30, 2004, during a television interview. In the ensuing three years, he was repeatedly asked to set an exact date for his departure, but refused to answer.

A recent poll published by the Guardian newspaper suggested 64 per cent of all voters believe he was too concerned with foreign policy, and even 59 per cent of Labour supporters.

But the same poll also indicated he still has a respectable level of support -- at least compared to his party.

Overall, 44 per cent said he was good for Britain, which is a higher level of approval than the Labour party currently enjoys. In the recent local and devolved elections, Labour received about 27 per cent of the vote.

With files from The Associated Press