The Dutch government has collapsed over disagreements within the governing coalition on extending troop deployments in Afghanistan.
After marathon talks, Christian Democratic Prime Minister Jan Peter Balkenende announced that the Labour Party was quitting the government.
Mr Balkenende has been considering a Nato request for Dutch forces to stay in Afghanistan beyond 2010.
But Labour, the second-largest coalition party, has opposed the move.
Just under 2,000 Dutch service personnel have been serving in the southern Afghan province of Uruzgan since 2006, with 21 killed.
Mr Balkenende said he would offer the cabinet's resignation to the Dutch Queen Beatrix later on Saturday following the collapse of the government.