Iceland's prime minister has offered his resignation, just hours after his request to call a snap election was blocked, Icelandic media report.

Sigmundur Gunnlaugsson said on Monday he "certainly" wouldn't be resigning after being accused of hiding millions of pounds in one of the stand-out Panama leaks.

Gunnlaugsson faced calls to resign and protests outside the Icelandic parliament over claims he stored away millions of pounds of investments in his country's banks behind an offshore company.

Leaked documents revealed he originally set up the company, named Wintris, with his wife in 2007 before selling his share to her - several months after taking office in 2009 - for the equivalent of 70p.

Yesterday he insisted he would not resign, saying his wife had always paid her taxes.

Today, however, Gunnlaugsson tried calling an early election, an attempt blocked by the Iceland president.

Now it has been reported the 41-year-old has offered his resignation.