Prime Minister Mahathir Mohamad threw Malaysian politics into confusion on Saturday by announcing his resignation and withdrawing it less than an hour later.

Dr Mahathir made his initial shock announcement at the annual congress of the ruling United Malays National Organisation (Umno), sparking pandemonium.

I wish to announce I am resigning from Umno and all positions in the National Front

Mahathir Mohamad, Malaysian Prime Minister

But within an hour, Deputy Prime Minister Abdullah Ahmad Badawi said party officials had persuaded Dr Mahathir to stay on.

Dr Mahathir, who is 76, has ruled Malaysia for 21 years and is Asia's longest-serving leader.

Electioneering ?

The BBC's South-East Asia correspondent, Jonathan Head, says there was never any chance Dr Mahathir's theatrical gesture would be accepted by Umno delegates.

If anything, says our correspondent, Dr Mahathir's position has strengthened, as support for the opposition Islamic Party declined after the 11 September attacks in the United States.

Opposition parties have accused Dr Mahathir of a cynical piece of political manipulation.

It does seem like a calculated move to show the nation that he is still needed within Umno

Wan Azizah Wan Ismail, opposition

They say it was a deliberate ploy to rally support behind him, with the possibility of early elections being called next year.

Wan Azizah Wan Ismail, leader of the opposition front and wife of jailed former deputy premier Anwar Ibrahim, told Reuters news agency she believed the event was stage-managed.

Supporters stunned

The political drama began as the prime minister delivered a closing speech at the end of the five-day conference.

After 21 years, Mahathir's grip on power remains unchallenged

He had waited until the end of the South Korea-Spain match at the World Cup to make his address, which was shown live on television.

"I wish to announce I am resigning from Umno and all positions in the National Front [ruling coalition]," he told 2,000 stunned delegates.

Many supporters broke down in tears and clamoured to get near Dr Mahathir.

"Why?" shouted Trade Minister Rafidah Aziz, according to Associated Press news agency.

"I have decided," Dr Mahathir said. "It's been a long time."

Withdrawal 'retracted'

To chants of "Withdraw! Withdraw!" the prime minister was led away to a meeting room and a doctor was seen entering a short time afterwards.

While delegates were wondering what had happened, Mr Abdullah appeared on stage and delivered another surprise announcement.

"After much persuasion from Umno Supreme Council members and Umno members, Dr Mahathir has agreed to withdraw his resignation," he said.

Emotional party members shouted "Long live Mahathir" in relief.

There has been growing speculation in recent years that Dr Mahathir would like to withdraw from his positions within the party and concentrate on his role as prime minister.

His departure would be a shock to the region, where Dr Mahathir enjoys international stature.

The Islamic fundamentalist opposition dismissed his announcement as a ploy to attract sympathy votes in elections, which could be called early next year.