"It is clear our demand for new elections still stands," Left Green Party leader Katrín Jakobsdottir told Reuters.
Gunnlaugsson is to resign, his party said, becoming the first casualty of leaked documents from a Panamanian law firm which have shone a spotlight on the finances of an array of politicians and public figures worldwide.
(Reporting by Ragnhildur Sigurdardottir; Editing by Mark Heinrich)
