Italian Prime Minister Giuseppe Conte, bowing to the emerging crisis, resigned on Tuesday while maneuvering to boost his chances of returning as the top contender to head a new government supported by a larger coalition.

President Sergio Mattarella will begin consultations with the parliamentary parties on Wednesday after receiving the resignation, expected to last just a few days, to try to cobble together a new cabinet that can guide Italy through a second wave of the pandemic and a drastic recession.

After losing last week's confidence vote in the Senate, Conte was forced to resign, triggering a government crisis just as Italy faces critical economic and political decisions.

After former Prime Minister Matteo Renzi pulled his tiny Italia Viva Party out of the governing coalition, the result of the vote of confidence left Conte without a sound majority in parliament.

Having failed to extend his majority in a last-minute attempt, Conte and his government were forced to pull the plugin order to prevent another parliamentary loss later this week.

The step on Tuesday marks the formal opening of a political crisis and leaves Mattarella facing crucial decisions.

He could give Conte another mandate to try to form a government, but he could also select another politician or a technocrat to lead a larger majority-supported transition or "national unity" government.