Former Republican vice presidential candidate Sarah Palin has resigned as governor of Alaska prompting speculation that she is preparing to run for the country's presidency.

Ms Palin's term is due to end in 2010 but she has decided to step down from her position on 26th July.

Explaining the reasons for the decision at a press conference, Ms Palin said: "We are not retreating, we are advancing in a different direction.

"We know we can effect positive change outside government at this moment in time on another scale and actually make a difference for our priorities."

Her resignation means Alaska's Lieutenant Governor Sean Parnell will take over as state governor later this month.

Sarah Palin became the focus of attention in last year's US presidential campaign when she was chosen by presidential candidate John McCain to run alongside him.

She portrayed herself as a conservative politician but was criticised by the press for lacking knowledge on key policy issues after a host of uncomfortable television appearances.

Her 18-year-old daughter's pregnancy outside of wedlock and a corruption probe in Alaska also hit the headlines during the campaign.
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