Russian President Boris Yeltsin announced his resignation on the last day of 20th century and named Prime Minister Vladimir Putin as acting president.

Yeltsin, whose second term as president expires next June, said he would not "be clinging to power for another six months" and that he would like to apologize to the Russian citizens for his failure to justify their hopes.

Meanwhile, he also announced that the presidential elections would be held on March 27, 2000.

Under the Russian constitution, presidential elections should be held within three months after the resignation.

I will not "be clinging to power for another six months," Yeltsin told the nation in a televised New Year address.

Yeltsin said: " I am going. I am going earlier than my established time." He added that Russia needs new political leaders to lead it into the new century.

Sources said that Yeltsin has signed presidential decrees on his resignation, the nomination of Prime Minister Vladimir Putin as acting president, and the decision to hold presidential elections on March 27.

Yeltsin's early resignation is believed to be further boosting Putin's chance of entering the Kremlin. Putin took office as premier last August, when Yeltsin described him as his preferred successor.

Putin has seen his popularity soaring amid a military campaign against Chechen rebels.