"Considering the interest of the society and in compliance with the Kampala accord, I decided to quit to compromise for the national interest", Mohamed told reporters in Mogadishu, thanking those who supported him.
Somali President Sharif Sheikh Ahmed and parliament leader Sharif Hassan Sheikh Aden on Thursday signed a deal in the Ugandan capital extending their terms for a year, pushing back polls due in August.
The accord which also ended the prime minister's mandate stipulates that elections for president and speaker of parliament will have to take place prior to August 20, 2012.
Somalia's transitional government, which was set up in 2004 in Kenya and owes its survival to the international community, has been weakened by infighting between its leaders which has worsened as the end of the mandates approached.
Published 19 June 2011, 15:17 IST