London, England (CNN) -- British Prime Minister Gordon Brown said Monday he will step down as leader of his party after it was defeated in parliamentary elections last week.
"As leader of my party I must accept that that is a judgment on me," he said.
He is asking his Labour Party to begin preparations for a new leadership contest in which he will not be a candidate, he said. That effectively means he is on his way out as prime minister.
He said he hoped a new leader would be in place by the next party conference, which is scheduled for September.
The move may clear the way for a deal to keep his party in power after elections last week left no party with an absolute majority in parliament.
Brown said a Labour-Liberal Democrat alliance made sense, given the results of Thursday's vote.
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