"To break the current deadlock, the king has decided to appoint another member of the PJD (Justice and Development Party) to lead the government within the shortest time possible," a palace statement said.
King Mohammed VI tasked Prime Minister Abdelilah Benkirane with forming a new government after the Islamist PJD won the most seats in elections in October 2016.
The party had come to power after the king relinquished some of his near-absolute control following Arab Spring-inspired protests in 2011, with Benkirane heading a previous coalition government for five years.
Benkirane told AFP today that he would also step down from leadership of the PJD in the months ahead.
"We cannot comment on decisions taken by the leadership. All I can say is that of course I accept this decision, which falls in line with the constitution. One cannot say no to His Majesty," he said.
Benkirane had proposed to rebuild his outgoing coalition, an alliance comprising a range of parties including other Islamists, liberals and ex-communists.
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