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In addition, the party is unhappy about the Preah Vihear controversy case.

"Our party's standpoint is to first solve economic problems (not Constitutional amendment). So far, we have done our best in maintaining government stability and to steer it towards the economic agenda."

"However, we've seen different opinions," he said, adding the Preah Vihear case is the most worrisome issue, as despite the appointment of the new foreign affairs minister, the problem will persist.

"We want to live up to the party's name, especially in defending the sovereignty and our motherland. It's time for us to review our political role and leave the government."

The Puea Pandin's withdrawal immediately plunges the Samak government into a crisis of confidence, further fuelling the political instability.

Suwit informed Prime Minister Samak Sundaravej the decision at noon and also informed Chart Thai Party Leader Banharn Silapa-archa.

"We want to see more constructive politics and harmony, not confrontation or another bloodshed."

Puea Pandin Party's withdrawal from the coalition government will leave four Cabinet seats vacant. These posts consist of those held by Suwit (deputy premier and industry minister), Ranongrak Suwanchawee (deputy finance minister), Mun Patanotai (Information and Communications Technology Minister) and Sithichai Kowsurat (deputy interior minister).

A party source said all MPs could still excercise their own judgement in Parliament when they vote, even though they are barred from moving to other parties.

Meanwhile, a major Cabinet reshuffle is expected to be announced shortly as Prime Minister Samak and his allies hastily move to consolidate their power base, according to Government House sources.

The imminent reshuffle will likely see 8-9 new Cabinet appointments, including Pol Gen Kowit Wattana as the new interior minister and deputy premier; Chaiya Sasomsub as the new commerce minister and Mingkwan Saengsuwan as a deputy premier or the new PM's Office minister in charge of the mass media sector.

Sources said interior minister Chalerm Yoobamroong is likely to lose his Cabinet post as a result of the ruling People Power Party (PPP)'s in-fighting.

Previously, Chalerm attempted to solicit support from a group of northern and central MPs but he was unsuccessful so the largest PPP fraction controlled by Newin Chidchod had managed to outmanevre Chalerm.

Source said the reshuffle will also likely see replacements for deputy premier and finance minister Surapong Suebwonglee, Deputy Transport Minister Anurak Jureemas, and Labour Minister Uraiwan Thienthong.

The legal status of all these three ministers is now uncertain following the Supreme Court's acceptance of the two- and three-digit lottery case in which all three were alleged to have violated the law while in office during the tenure of former premier Thaksin Shinawatra.