Estonian Prime Minister Kaja Kallas submitted her resignation to President Alar Karis on Monday morning, ERR News reports.
Kallas is stepping down after being nominated as the European Union's High Representative of the Union for Foreign Affairs and Security Policy.
She technically remains head of the government until the new coalition is sworn in.
Kallas has held the role of prime minister since 2021 and led three consecutive governments. She will also resign as Reform Party chairman later this summer.
Negotiations are already underway between Reform, SDE, Eesti 200 to continue the current power union, ERR News adds.
President Alar Karis has launched talks with representatives from all political parties in the Riigikogu (Parliament of Estonia) to start the process of forming Estonia's next government, the news outlet writes.
The new government is likely to take office at the start of August.
Kallas is expected to replace Josep Borrell as EU High Representative in October.