Since 2014 Libya has had two competing administrations, the one in Tripoli backed by powerful militias and the other in the port city of Tobruk.
The Tobruk-based administration still opposes the UN-backed body.
After the arrival of UN-backed national unity government in Tripoli, one of two rival governments in Libya has announced that it is stepping down, a justice ministry statement has said.
The Tripoli-based Islamist administration said it was standing down to prevent further bloodshed.