According to a statement from the President Mattarella's office, Renzi will stay on in a caretaker capacity until a new government can be put in place, Censor.NET reports citing Deutsche Welle.
Presidential aide Ugo Zampetti told reporters that Mattarella would start consultations on Thursday with various party leaders to see where support lies for a new government. The talks are expected to end on Saturday afternoon.
Renzi initially said he would step down immediately following last weekend's referendum in which Italians rejected his proposed constitutional changes. After nearly 60 percent of voters cast "no" ballots, he told the nation that his government was finished.
At the request of Mattarella, Renzi stayed on until parliament approved Italy's 2017 budget - which passed earlier on Wednesday.