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Chief Whip Andrew Mitchell has resigned following his clash with Downing Street police officers last month.
Mr Mitchell wrote to David Cameron to inform him of his decision, saying the row over the incident leaves him unable to fulfil his duties "as we would both wish".
"It is with enormous regret - not least because of the tremendous support and loyalty you have shown me during recent weeks - that I am writing to resign as your Chief Whip," the letter says.
Former Leader of the House Sir George Young has been appointed Chief Whip, Downing Street has confirmed.
In his resignation letter, Mr Mitchell again gave his "categorical assurance" that he did not call officers "plebs".
"I did not, never have and never would call a police officer a “pleb” or a “moron” or used any of the other pejorative descriptions attributed to me," he said.
"The offending comment and the reason for my apology to the police was my parting remark “I thought you guys were supposed to f***ing help us”. It was obviously wrong of me to use such bad language and I am very sorry about it and grateful to the police ofñcer for accepting my apology."
The Prime Minister said he had accepted Mr Mitchell's resignation with "regret", and thanked him for his work both in government and in opposition.
He said the incident in Downing Street was "not acceptable" and insisted Mr Mitchell was "right to apologise for it", but said the former whip had "much to be proud of".
Labour's Michael Dugher welcomed the resignation, but said Mr Cameron's "determination" to keep the Chief Whip in his job shows how "utterly out of touch" he is.
"It’s the right thing that Andrew Mitchell has gone today but David Cameron should really have shown some leadership and acted much, much sooner," the Shadow Cabinet Office minister told Sky News.
19/10/2012
19/10/2012
Summaries and transcripts from TV and radio
24/05/2013 on World at One, BBC Radio 4
24/05/2013 on Sky News
24/05/2013 on Today, BBC Radio 4