Chief Minister Pratapsingh Rane has submitted his resignation to Governor SC Jamir to pave way for formation of a new Congress-led government in the state.
The Governor on Tuesday directed Mr Rane to continue to act as "caretaker" Chief Minister till the formation of the new government.
Earlier, AICC secretary Shantaram Naik, MP and GPCC president Ravi S Naik briefed the Governor on the outcome of June 2 elections in which the Congress has emerged as the single largest party by winning in 16 constituencies in the 40-member Goa Legislative Assembly.
They had also indicated the possibility of Congress forming the government soon with the NCP alliance partner which bagged three seats and the two independents - Viswajit Rane, son of chief minister and Anil Salgaoncar, a miner.
The Congress Legislature Party (CLP) is likely to meet immediately after party supremo Sonia Gandhi indicates the name of the chief ministerial candidate who will be elected as the leader of the CLP.
The incumbent 69-year-old Pratapsingh Rane, who has been holding the post for the sixth time since 1972 and the young GPCC president and former seven-day chief minister Ravi Naik were strong contenders for the CM post.
Mr Rane is likely to be preferred by the coalition partners. Outgoing Law Minister Dayanand Narvekar and power minister Digambar Kamat are other contenders but the former is facing criminal charges in a cricket ticket scam.
The newly elected Congress legislators in a marathon session late last night, at the official residence of Mr Rane, had authorised the party supremo Sonia Gandhi to name the chief ministerial candidate.
Though the new government is to be constituted before June 11, the Congress is sparing no time for formation of the government in a day or two.
"Now that we are slightly in a better position in strength, we keep all options open for other parties including the MGP in the formation of the government, according to a senior Congress party source.
But the party prefers to maintain "equidistance" with the Save Goa Front chief and Congress rebel Churchil Almao and the lone UGDP member Atnasio (Babush) Monserrate and former minister who was elected from Taleigao, as of now, sources said.
Meanwhile, the opposition BJP is making "self-introspection" as to how the electorate gave the "fractured mandate" and find out what went wrong in the hustings for the losses it suffered.
Senior party leader Gopinath Munde was authorised by the central leadership to help the state BJP legislature party to elect the new opposition leader. The party secured 14 seats as against 17 it had won in the 2002 hustings.