Canada's opposition leader quits

Canada's opposition leader Stephane Dion tendered his resignation Monday, paving the way for new leadership to continue his Liberals' fight with the ruling Conservatives for control of parliament.

"I have decided to step aside as leader of the Liberal Party effective as soon as my successor is duly chosen," Dion said in a statement, days after fumbling a power grab from Prime Minister Stephen Harper's minority government.

Former Harvard academic Michael Ignatieff is reportedly set to be named interim Liberal leader until a party convention in May, supported by one of two rivals who also sought to succeed Dion.

That could happen as early as Wednesday, said local media.

Last week, Dion spearheaded a move to unseat Harper and install a Liberal-led coalition over the Conservatives' failure to seed an economic recovery as the nation is forecast to be entering a recession.

But he was tripped up by a shutdown of parliament by the governor general, at Harper's request.

Harper now has two months to try to resolve the political crisis before parliament resumes at the end of January.

Harper's finance minister is also preparing a budget for January 27 expected to undercut the coalition's call for a fast-tracked economic stimulus package.

"As the governor-general has granted a prorogation, it is a logical time for us Liberals to assess how we can best prepare our party to carry this fight forward," Dion commented.

"There is a sense in the party, and certainly in the caucus, that given these new circumstances the new leader needs to be in place before the House resumes," he said. "I agree."