Minister for Finance Paschal Donohoe has resigned from his role in Government to take up a position at the World Bank.
In a statement, Mr Donohoe confirmed that he is "departing from public life" in Ireland and is resigning as Minister for Finance "effective immediately".
He confirmed that he will stand down as a TD for Dublin Central later this week.
Mr Donohoe 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.
Watch: Taoiseach congratulates Paschal Donohoe on appointment to World Bank
Mr Donohoe will also stand down as chairman of the Eurogroup of finance ministers.
Taoiseach Micheál Martin confirmed Tánaiste and Fine Gael leader Simon Harris will be appointed Minister for Finance following Mr Donohoe's departure.
Hildegarde Naughton will be Minister for Education and Youth, with Helen McEntee moving to the role of Minister for Foreign Affairs and Defence.
Mr Martin paid tribute in the Dáil to Mr Donohoe, noting that his election to three terms as Eurogroup president shows the "deep esteem" in which he is held across Europe.
He said that some people believe that Ireland's standing internationally is based on "how loud we speak," but the truth is that it is based on "countless hours building relationships".
Mr Martin said Mr Donohoe's work "deserves our thanks, respect and appreciation".
He added that the World Bank is the largest funder of innovation in the field of development and he wished Mr Donohoe "the very best", adding that he will represent Ireland "with distinction".
Mr Harris said it is a day of "mixed emotion".
In a statement, he said: "While I always knew this day would come, it is a day of mixed emotion.
"It is a moment of sadness for the Fine Gael family, but it is also a moment of great pride for Ireland. Paschal's appointment reflects the regard in which he is viewed on the global stage."
Read More:
No time wasted as rumours over Donohoe successor swirl
Live updates following the resignation of Paschal Donohoe
Mr Harris said Mr Donohoe has "always placed the national interest above all else" and for Fine Gael ", he has left an undeniable legacy".
Mr Donohoe, who is 51, has been a TD for Dublin Central since 2011.
His ministerial career began in 2013 when he served as a minister of 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.
Watch: David Murphy describes Paschal Donohoe's new role at World Bank
Minister 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," he said.
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 that 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.
