Citing the inability of the government to rule the country, Musa al-Koni's announcement was the first such resignation by one of the nine members of the council, formed in early 2016.
"We failed to resolve the political crisis," he told reporters at a televised press conference in the capital, Tripoli. "We failed to solve citizens' everyday problems, and the problems have increased since we entered the country and unsolved problems have accumulated."
Last week, the deputy head of the presidential council, Fathi Al-Mijabri, issued a decree to appoint one of his loyal supporters as the head of the intelligence services, stoking the ire of other members who called his move illegal. The bickering comes just after the central bank approved a USD 26 billion annual state budget for the country.
The presidential council, headed by Prime Minister Fayez al-Serraj, has little power despite it being Libya's internationally recognised government.
The parliament in Libya's eastern city of Tobruk has refused to endorse the UN peace deal because it would give the council control over the army, effectively squeezing out Field Marshal Khalifa Hifter who commands the Libyan National Army and who dominates the east.
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