Antananarivo, 17 March-(ANA)-Madagascar's President Marc Ravalomanana has said he is standing down and handing power to the military.
But military leaders were reported to favour a transfer direct to opposition leader Andry Rajoelina.
Mr Rajoelina has installed himself in the president's offices, seized on Monday by pro-opposition troops.
Mr Ravalomanana has reportedly left the Iavoloha palace on the fringes of the capital for an undisclosed location.
The crisis on the Indian Ocean island has left 100 people dead since January.
In a radio address announcing his resignation Mr Ravalomanana said power would be handed to a military directorate, but it is understood that the head general turned down an offer to take over.
A spokesman for Mr Ravalomanana told Reuters news agency power had been handed to the most senior figure in the military, navy admiral Hyppolite Ramaroson.
But Col Andre Ndriarijaona, who last week said he had replaced the military chief of staff, said the military preferred Mr Rajoelina.
Mr Ravalomanana's resignation marks a dramatic victory for Mr Rajoelina, who was sacked as mayor of the capital in February.
The former disc jockey took up office at the presidential residence in central Antananarivo on Tuesday before emerging triumphantly to parade among thousands of supporters.
He has announced there will be a new constitution and elections within 24 months.
The current constitution sets a minimum age of 40 for presidential candidates. Mr Rajoelina is 34.(ANA)
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