Russian Prime Minister Dmitry Medvedev said yesterday that his government was resigning to give President Vladimir Putin room to carry out the changes he wants to make to the constitution.

The announcement came shortly after Putin proposed a nationwide vote on sweeping changes that would shift power from the presidency to parliament.

Medvedev made the announcement on state TV sitting next to Putin who thanked Medvedev, a close ally, for his work.

Putin said that Medvedev would take on a new job as deputy head of Russia’s Security Council, which Putin chairs.

Putin asked for the outgoing government to remain at work until a new government was appointed. 

Meanwhile, Russian media reports say Putin on Wednesday formally put forward Mikhail Mishustin, the little-known head of Russia's Federal Tax Service, to be Russia's new prime minister.

Putin submitted his candidacy to the Russian parliament for approval after Mishustin agreed to be put forward for the role, the Kremlin said.

Russia's lower house of parliament (State Duma) said it would decide on whether to approve Mishustin as Russia's new prime minister on Thursday, the state-run RIA Novosti news agency reported.

Sweeping constitutional amendments proposed by Putin would reportedly enable him to hold onto power even after leaving the presidency in 2024.

Putin used his annual state of the nation address in Moscow to announce several proposed amendments to the constitution, which would transfer greater power to Russia’s parliament and which he said would be put to a national vote.

He, in particular, suggested amending the constitution to allow lawmakers to name prime ministers and cabinet members.  The president currently holds the authority to make those appointments.

The role of governors would also be enhanced, Putin said, though Russia would maintain its presidential system.  "Russia must remain a strong presidential republic," he noted.

Putin also said he wanted to tighten the criteria for anyone wanting to become president - anyone wishing to become president must have lived in Russia for the past 25 years.