Sharaf, who heads the caretaker government after a revolt toppled president Hosni Mubarak in February, is expected to unveil a new cabinet by Monday that he hopes will end a week long sit-in in central Cairo.
The announcement of Orabi`s resignation on state media came hours after Sharaf appointed veteran economist Hazem Beblawi and Ali al-Silmi, a leader of the liberal Wafd party, as his deputies.
Sharaf, who has limited powers under the military rulers of the country, has come under fire from dissidents who once embraced him for the slow pace of reforms after Mubarak`s ouster.
Orabi said he submitted his resignation "to spare the prime minister any embarrassment during the current negotiations on the ministerial changes," the state-run MENA news agency reported.
Orabi had filled the post for less then a month, taking over from Nabil al-Arabi, a popular choice who had quit the ministry to head the Arab League.
Despite the announcements, hundreds of protesters who pitched tents in Cairo`s Tahrir Square stayed put, although some protesters suspended a hunger strike after negotiations with military representatives, state media reported. (*)
Editor: Kunto Wibisono
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