Populist billionaire Andrej Babis has acknowledged he might not be part of the new Czech government, even though his centrist ANO movement won October’s parliamentary election.
A new minority government led by Mr Babis was appointed in December, but lost a mandatory confidence vote in Parliament on Tuesday.
He and other ministers have agreed to resign.
Czech president Milos Zeman said he will ask Mr Babis to form another government, but no party in parliament seems ready to enter a coalition with ANO because Mr Babis is facing fraud charges.
The charges involve alleged misuse of EU subsidies for a farm he had owned.
Mr Babis told Czech public television that the next government might not include him, saying “the ANO movement has to decide that”.
It is unclear who might replace him as prime minister.