Minister for Finance Paschal Donohoe is to stand down today from his role in Government.
He will take up the second most senior position in the World Bank, as Managing Director and Chief Knowledge Officer.
The organisation's president is Ajay Banga and the bank provides low interest loans to developing countries.
Mr Donohoe will stand down as a TD for Dublin Central later this week.
He will also stand down as chairman of the Eurogroup of finance ministers.
It is understood that a new Fine Gael finance minister will be announced this evening.
Mr Donohoe, 51, has been a TD for Dublin Central since 2011.
His ministerial career began in 2013 when he served as a minster for state and was appointed as Minister for Transport, Tourism and Sport in 2014.
He became Minister for Public Expenditure and Reform in 2016 and was appointed Minister for Finance in 2017.
Minster of State Alan Dillon said Mr Donohoe's resignation is a "significant development".
"It's now a matter for the party leaders. Tánaiste Simon Harris has always emphasised stability and continuity in Government and I know he will approach this transition with the same focus."
Minister of State Colm Brophy said he was delighted for Mr Donohoe.
Speaking on RTÉ's Today with David McCullagh, Mr Brophy said he has known him for years and years and this is a wonderful recognition for him.
Mr Brophy said it will lead to some interesting times for Fine Gael on a national level.
Meanwhile, the Lord Mayor of Dublin has said he will consult family and supporters about the possibility of contesting the Dublin Central by-election, which will be triggered by Mr Donohoe's resignation.
Ray McAdam is a close ally of Mr Donohoe's and it is widely expected he will contest the seat vacated by his political mentor.
Mr Donohoe won his seat in the 2011 general election after unsuccessfully contesting a 2009 by-election in the constituency following the death of Tony Gregory.
In last November's election, Gerard Hutch came close to winning a seat in the constituency.
