Palestinian Prime Minister Mohammed Shtayyeh said Monday his government is resigning, in a move that could open the door to U.S.-backed reforms in the Palestinian Authority.

President Mahmoud Abbas must still decide whether he accepts Shtayyeh and his government's resignation. But the move signals a willingness by the Western-backed Palestinian leadership to accept shake-up that might usher in reforms seen as necessary to revitalize the Palestinian Authority.

The U.S. wants a reformed Palestinian Authority to govern Gaza once the war is over. But many obstacles remain to making that vision a reality.

"The next stage and its challenges require new governmental and political arrangements that take into account the new reality in the Gaza Strip," Shtayyeh said at a Cabinet meeting.

Abbas is expected to choose Mohammad Mustafa, chairman of the Palestine Investment Fund, as the next prime minister.