A week after a court ruled it was unconstitutional, the military-backed government of Fiji has resigned.

The interim government's attorney general spoke to reporters on Wednesday, confirming that Prime Minister Laisenia Qarase had met with President Ratu Josefa Iloilo to discuss last week's court ruling that declared the government put in place following a coup last year illegal.

"We have agreed and we have tendered in our resignation after the meeting today and it has been taken up by the president to decide," said Alipate Qetaki.

Iloilo is scheduled to meet with the Great Council of Chiefs on Thursday, and has so far not responded to the government's resignation.

The council of chiefs is a traditional enclave of indigenous leaders that appoints the president and vice-president.

Last May, a band of armed rebels stormed the parliament in Fiji, taking the government hostage in the name of indigenous Fijians' rights.

They were angry at the election of the first ethnic Indian prime minister, Mahendra Chaudhry, whom they deposed. He and more than 25 other members of parliament were held hostage for 56 days by failed businessman George Speight and his followers.

Speight and most of the rebels are in jail awaiting trial.

An hour before Qetaki's announcement, Chaudhry called on Iloilo to dissolve the government and call fresh elections.

"It is our opinion that, after many months of uncertainty and upheaval, the people should deliver a fresh mandate for the government of the nation," said Chaudhry in statement.

Immediately after last week's ruling, Chaudhry said he still regarded his government to be the country's legal administration.

But even within his own coalition there have been calls for an indigenous Fijian leader.

He now says the only way to bring the country out of 10 months of political chaos is to appoint a caretaker government until elections can be held.