Senior party leader Durai Murugan said Karunanidhi had advised Stalin against such move even as other leaders had asked him not to take such a 'tragic decision" as they were all with him.
"So he accepted our request and leader's advice also and withdrew" his resignation, he told reporters.
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Stalin had earlier in the day tendered his resignation from all party posts owning moral responsibility for the party's loss at the hands of archrival AIADMK in the April 24 Lok Sabha elections where it could not win even a single seat.
With Alagiri, who was involved in a power tussle with his younger brother expelled for disciplinary reasons, Stalin had led the DMK's charge in the elections, from handpicking the candidates to finalising the poll strategy, besides embarking on a whirlwind campaign schedule to ensure the party's win.
In Madurai, Alagiri did not seem to attach much importance to Stalin's offer to resign, dubbing it as a 'drama'.
"I don't watch or hear unnecessary news. I came to know only from you about his (Stalin's} offer to resign," he told reporters when sought for his response on the matter.
"All this is a drama. He will pretend to give resignation letter. Someone will prevent him. Then the DMK president (Karunanidhi) will say he will not accept the resignation. You wait and see how long this drama is enacted," he said.
Earlier, Stalin's supporters held protests outside the Chennai residence of Karunanidhi and Stalin against his decision to quit even as many others wrote in social media pages asking their leader to reconsider his decision.
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