Michel said after 12 years in office, the time had come to hand power to a new leader.
“I am leaving the Office of the President with a sense of mission accomplished. During these 12 years that you gave me the honour and privilege to lead our nation, I have completed my responsibility and my duty.”
Michel, whose party has ruled Seychelles since 1977 announced his resignation but it was initially unclear whether new elections would be held.
On Wednesday, State House issued a statement saying Vice-President Danny Faure would be sworn in on Oct 16 and finish Michel’s term.
“Vice-President Danny Faure will succeed me and finish my remaining four years,” the statement quotes Michel as saying.
His announcement comes on the day that the National assembly which is now controlled by an opposition coalition Linyon Demokratik (LDS) was sworn into office, after their recent victory in legislative elections held earlier this month.
In the vote for a 33-seat parliament, the LDS secured 19 seats and Michel’s Parti Lepep won 14, marking the first transfer of power within the legislature in the nation’s history.
The resignation also comes 10 months into Michel’s third and final five-year term as president.
Vice president Danny Faure will assume office and be sworn on October 16 the day President Michel’s resignation takes effect.
Faure is expected to complete the four years that remain to be served on the president’s term.