Bangladesh Prime Minister Sheikh Hasina has resigned, the country's army chief says, announcing that an interim government will run the affairs of the country until a new election is held.

Chief of Army Staff Waker-Uz-Zaman asked the protesters to go home and let the military restore peace.

The development means the end of 15-year rule of Awami League, the party of the founder of the republic.

Reports say Hasina, 76, fled to neighbouring India's West Bengal state.

Earlier reports had suggested that Hasina, along with her sister, had left the capital Dhaka amid widespread protests.

"She and her sister have left Ganabhaban (the premier's official residence) for a safer place," the source said. "She wanted to record a speech. But she could not get an opportunity to do that."