SANAA - Yemen's new prime minister, Ahmed Awad bin Mubarak, quit the post early on Thursday, amid threats of mass protests by the Shiite Houthi group, the official Saba news agency reported.

President Abd-Rabbu Manour Hadi agreed to accept the resignation "after lengthy discussions... and intensive contacts with representatives of political parties," Saba reported.

In his letter to Hadi, Mubarak apologized "for not being able to accept the position which has caused escalation in the country, " two days after he was named as premier.

Hadi named Mubarak, director of his office, as the prime minister to form a government on Tuesday, two weeks after the Shiite Houthi rebels overran the capital.

The Houthi group, however, rejected the appointment of Mubarak shortly after the announcement.

In a statement, the group said the appointment came without internal consensus that undermines the sovereignty and independence of the country and also jeopardize the will of the Yemeni people.

On Wednesday, Houthi leader Abdul Malik al-Houthi called for mass protests in the capital Sanaa over the president's appointment of Mubarak.

He said there was "foreign interference" when the president was considering candidates of the prime minister.

"We received assurances that this name (Ahmed Awad bin Mubarak) was eliminated but right after the meeting with the American ambassador, the name resurfaced," al-Houthi said.

On Sept 21, the government and Shiite Houthi group signed a cease-fire deal in Sanaa, both agreeing to stop fighting in the capital, nominate a prime minister within a week and form a technocrat government within a month.

However, the Houthi group refused to hand over towns and cities seized in the past weeks and has taken over almost all state institutions in Sanaa since then.

The deal empowers the Houthi rebels as it allows the group to play an important role in forming a cabinet and determining the future control of the army.

The peace agreement put an end to deadly clashes between the rebels and the army supported by Sunni militia, which left about 400 people killed, including about 50 civilians.