Helsinki, Oct 14 (IANS): A governmental crisis erupted in Iceland after Prime Minister Bjarni Benediktsson on Sunday announced the government's intention to resign and called for new elections.

Iceland's President Halla Tomasdottir is scheduled to meet with party leaders on Monday over the prime minister's proposal that the parliament should be dissolved and snap elections would be held.

Benediktsson announced his decision on Sunday, citing significant disagreements within the cabinet over immigration and energy policies. His announcement sparked a governmental crisis in the island country, Xinhua news agency reported.

Ahead of his meeting with the president on Monday, Benediktsson told Icelandic radio RUV that he expects the president to approve the dissolution of parliament, noting that the president had earlier expressed her desire to assess the situation.

According to the local media report, Tomasdottir will consult with the parliamentary party leaders on Monday and is expected to decide later this week whether to approve the dissolution of parliament.

The timing of the election will depend on formal procedures, with potential dates being November 23 or 30.