The move came on the heels of his shock announcement on Tuesday night that he would not seek another term as premier.

"Today is the last day I will head this Cabinet," Thaksin told a Cabinet meeting yesterday. "I'm tired and want to rest. I have appointed Chidchai to do my work."

He also asked reporters to leave him alone.

"Let me have my privacy back from today. Whatever you want to know, go ask Chidchai," he said. Chidchai is the highest ranking of seven deputy prime ministers.

Thaksin insisted he would not be involved in the Cabinet's decision-making process unless "significant agendas" arise.

 After five years in office he needed time to recuperate, he said.

On Tuesday he said he would take a "political break" so the country could reconcile and celebrate the 60th anniversary of His Majesty the King's accession to the throne.

Tension had spread across the country following the uncertain outcome of Sunday's election and Thaksin's insistence that he would continue to serve as prime minister, despite a backlash at the ballot box that saw an unprecedented number of voters spoil their ballots or tick "no vote".

"What I have done is to ensure that the new House [which will select the new prime minister] will take its first session." Thaksin said. "I believe my decision is the best way out for the country."

Chidchai, a close aide of Thaksin, was promoted to the No 2 spot in the Cabinet in the middle of last month while thousands of anti-Thaksin protestors were besieging Government House.

Overseeing security at the time, Chidchai had been seen as a replacement for Thaksin should mounting protests force him to step down.

Yesterday's meeting was called to discuss economic affairs, but Thaksin was reported to have stunned his ministers by using the session to say "goodbye".

Some ministers - including Anuthin Charnveerakul, Surapong Suebwonglee and Sudarat Keyuraphan - cried, reports said.

A Thai Rak Thai Party source said Thaksin and his family would fly to England, where his daughter Pinthongta is enrolled in a graduate programme, on Saturday for a vacation.

Meanwhile, Thaksin's opponents were sceptical about his latest moves.

Democrat Party deputy leader Jurin Laksanavisit said it would have been better for Thaksin to resign along with his ministers to pave the way for a "royally sponsored prime minister".

Thaksin will be able to control the replacement he selected, Jurin said.

Suriyasai Katasila, spokesman of the People's Alliance for Democracy, said Thaksin was still the caretaker prime minister legally.

"Thaksin should resign if he is not ready to serve the premiership post," he said, adding that key PAD members would discuss how to react to Thaksin's latest move by Saturday.

"But we are still strict about our ultimatum that gives Thaksin until the end of the month to step down from the caretaker post," Suriyasai said.

Although Thaksin had promised the new government under his party would rule for only one year to oversee political reforms before calling a new election, the PAD regarded one year as too long, Suriyasai said. The PAD wants a six-month limit, he said.

The PAD would move its rally tomorrow to Sanam Luang, he said.