Tony Blair today announced he will resign as British prime minister on June 27, defending his record by declaring: "Hand on heart, I did what I thought was right."
Mr Blair told an emotionally-charged meeting packed with banner-waving supporters: "Today I announce my decision to stand down from the leadership of the Labour Party.
Tony Blair hugs his wife Cherie at Trimdon Labour Club
"The party will now select a new leader.
"On the 27th of June I will tender my resignation from the office of Prime Minister to the Queen."
He told the party faithful gathered at Trimdon Labour Club in his Sedgefield, Co Durham, constituency: "I have been Prime Minister of this country for just over 10 years.
"In this job, in the world today, I think that is long enough for me, but more especially for the country.
"Sometimes the only way you conquer the pull of power is to set it down."
He said his administration had an unbeatable record, and tackled criticism over Iraq head-on, but said others would make the final judgment on his time in office.
Mr Blair also apologised to the British people for the times he had "fallen short" during his decade of power in Downing Street.
The prime minister, MP for Sedgefield since May 1983, told his audience: "There are obviously judgments to be made on my premiership and in the end that is for you, the people, to make."
Mr Blair began his long-awaited speech with tributes to his long-standing agent, John Burton, and his wife, Cherie.
Then he said: "I have come back here to Sedgefield, to my constituency, where my political journey began and where it's fitting that it should end."
Mr Blair conceded that expectations of his new administration in 1997 had been "too high" — but set out what he said was a unique post-war record.
"1997 was a moment for a new beginning — the sweeping away of all the detritus of the past," he said.
"And expectations were so high, too high probably, too high in a way for either of us.
"And now, in 2007, you can easily point to the challenges or the things that are wrong or the grievances that fester."
But to massive applause, he boasted: "There is only one government since 1945 that can say all of the following: more jobs, fewer unemployed, better health and education results, lower crime, and economic growth in every quarter.
"Only one government — this one."
He insisted: "Britain is not a follower today, Britain is a leader. It gets the essential characteristic of today's world — it is interdependent.
"It is a country comfortable in the 21st century, at home in its own skin, able not just to be proud of its past but also confident in its future.
"I don't think Northern Ireland would have changed unless Britain had changed."
He tackled the thorny issue of Iraq by saying that removing Saddam from power in Iraq and the Taliban in Afghanistan had been done with "relative ease", but the "blowback" from "global terrorists" had been substantial.
"For me, I think we must see it through," he said. "The terrorists who threaten us here and around the world will never give up if we give up.
"It is a test of will and belief and we can't fail it."
His remarks were heard in silence.
Mr Blair — who made no reference to his presumed successor Gordon Brown in his address — spoke of the lessons he had learned as Labour leader for 13 years and Prime Minister for ten.
Mr Blair said he had been "very lucky and very blessed" during his time in office.
Deputy Prime Minister John Prescott today also announced formally that he was standing down.
A special Labour conference will be held on Sunday June 24 to formally elect successors to the two, who have been at the party helm since 1994.
Agencies