KUALA LUMPUR, Oct 8, 2008 (AFP) - Malaysia's Prime Minister Abdullah Ahmad Badawi said Wednesday he will step down as leader of the ruling party in March, spelling the end of his troubled term as premier.

Abdullah has been under intense pressure to quit since disastrous general elections this year that shattered confidence within the United Malays National Organisation (UMNO) which leads a multi-racial coalition.

"I am now announcing I will not seek the presidency of UMNO in the upcoming elections. I want a party that is united," Abdullah told a press conference, referring to the party's internal leadership vote in March.

Traditionally the UMNO president becomes prime minister, and the party's vice-president Mohamad Ali Rustam confirmed Abdullah would also relinquish his position as prime minister.

"He is not going to contest the party president post and will step down as prime minister in March," Mohamad Ali told AFP ahead of Abdullah's announcement.