Georgian President Eduard Shevardnadze announced his resignation yesterday, bowing to opposition protesters who stormed parliament and declared a "velvet revolution" in the former Soviet republic.

"I see that all this cannot simply go on. If I was forced tomorrow to use my authority it would lead to a lot of bloodshed. I have never betrayed my country and so it is better that the president resigns," Mr Shevardnadze said on television.

Mr Shevardnadze's white-haired head was bowed as he walked away, but the former Soviet foreign minister - accused in mass protests in the poverty-plagued country of vote-rigging - gave a strained smile and lifted his hand to wave goodbye.

His resignation followed talks with Russian Foreign Minister Igor Ivanov, main opposition leader Mikhail Saakashvili and fellow opposition activist Zurab Zhvania at the veteran Georgian president's suburban residence in the capital Tbilisi.

Tens of thousands of opposition supporters outside parliament exploded in rapturous celebrations when Mr Shevardnadze gave up 11 years of power in a country closely watched by the West and investors because of a pipeline project to take Caspian oil to the Mediterranean Sea. Fireworks ripped into the sky.

Mr Saakashvili told CNN the speaker of the outgoing parliament, Nino Burdzhanadze, would take over as acting president from Mr Shevardnadze, 75. The constitution provides for her to remain interim president for 45 days pending elections.

"Now it is important that... Mr Shevardnadze and the police of Georgia and the armed forces, as well as the acting president, preserve stability and calm in the country," said Mr Saakashvili.

He urged protesters to remove their barricades in Tbilisi. Mr Saakashvili had called on supporters to march on Mr Shevardnadze's residence to force him to resign after a three-week protest campaign against alleged rigging in a November 2 parliamentary election.

The crowds outside parliament shouted "Victory, our victory".

Mr Saakashvili led a parade of vehicles from Mr Shevardnadze's residence to chants of "We won, we won". Many people waved red-and-white opposition flags out of car windows.

He beamed as he addressed reporters, in sharp contrast to an exhausted Mr Shevardnadze, who spoke slowly but clearly.

Mr Shevardnadze had said earlier in the day he was ready to discuss key opposition demands, including an early presidential poll, but opponents said it was too late for talks.

His resignation occurred amid signs that some security forces were moving over to the opposition side in Georgia, where a bloody civil war was fought in the early 1990s and two regions have broken away from central government rule.