South Australian Premier Mike Rann is to stand down as leader of the state's Labor Party.
Mr Rann has served 16 years as leader including nine as State Premier.
But he will not step down until several projects are completed, including negotiations with BHP Billiton for the Olympic Dam expansion.
These negotiations are expected in September or October.
The ABC reports Mr Rann had been expected to face a coup within weeks if he did not bow to pressure to stand aside.
Right faction leaders told him on Friday that he should step down as party leader before the next party convention.
Mr Rann said he would make further announcements on his future on his return from India around 7 or 8 August.