A day after giving a "last warning" to thousands of defiant demonstrators camping out in Gezi Park, Erdogan adopted a softer tone, telling protesters their message had been received.
His concession to halt the park project marked the first easing of tensions in the standoff, which has presented the Islamic-rooted government with the biggest challenge of its decade-long rule and earned it criticism from the West.
"Young people, you have remained there long enough and delivered your message.... Why are you staying?"
A peaceful sit-in to save Gezi Park's 600 trees from being razed prompted a brutal police response on May 31, spiralling into nationwide outpourings of anger against Erdogan and his ruling Justice and Development Party (AKP), seen as increasingly authoritarian.
After talks with an umbrella group of protesters called Taksim Solidarity, Erdogan agreed to suspend the project while waiting for a court ruling on its legality.
If the redevelopment is deemed legal, he wants to offer a referendum on the redevelopment plans.
"The positive outcome from tonight is the prime minister's explanation that the project will not continue before the final court decision," said Tayfun Kahraman, a spokesman for Taksim Solidary.
The group has responded more coolly to Erdogan's other proposal to hold a referendum on the proposed reconstruction of Ottoman-era military barracks in Gezi Park.
"We did not suffer through the attacks... So that a referendum could take place," they said in a statement on Thursday.
