Hungary's Socialist Prime Minister Peter Medgyessy has resigned following a dispute with the government's Free Democrat coalition partner over a cabinet reshuffle, Hungarian news agency MTI reported Thursday. A successor has been appointed but has not yet been named. Laszlo Kovacs, foreign minister and chairman of the Hungarian Socialist party (MSZP) said Medgyessy's successor would be announced on August 26 following deliberations with the Free Democrat party. Medgyessy was facing a motion of no confidence in parliament on September 6. Hungarian media, quoting unofficial sources, said that coalition parties had agreed on Peter Kiss, currently minister in charge of the prime minister's office, to take over from Medgyessy. Kovacs said he accepted Medgyessy's resignation with regret, but he understood why the prime minister did not want to continue in office when the Free Democrats could not guarantee confidence in him. The new prime minister, who takes office on September 6, would continue with the current government's course of action, Kovacs said. Tension between Medgyessy and the Free Democrats rose Wednesday after the prime minister sacked three ministers, including Free Democrat Economy Minister Istvan Csillag. --SP 2132 Local Time 1832 GMT