Queen Beatrix of the Netherlands has announced that she would abdicate in favour of her son Crown Prince Willem Alexander at the end of April after 33 years in power.
"It is with the greatest of confidence, that I will hand over the throne on April 30 to my son, Willem Alexander, Prince of Orange," Beatrix told national television, using the official title of the heir apparent.
The queen, who is to turn 75 on Thursday, said her birthday and the 200-year anniversary of the monarchy in 2013 "were the reason for me to step down".
"I'm standing down because public service is too heavy for me, because of the belief that responsibility for our country should be in the hands of a new generation," she said.
Liberal Prime Minister Mark Rutte spoke immediately after the queen.
"She has always done her utmost for Dutch society, being visible and with enormous energy," Rutte said.
"She has grown into a Dutch icon," he said, also paying homage to Willem Alexander.
"He and Princess Maxima are fully prepared for the task," Rutte said. "They will serve our country with devotion."
Beatrix's much-loved mother Juliana also abdicated, in 1980, when her daughter stepped into her shoes at age 42.
Beatrix's abdication ends more than 100 years of female reign on the Dutch throne.
Willem Alexander, 45, will become the first Dutch king since Willem III, who reigned until his death in 1890.
The announcement was "totally unexpected," royal expert Reinildis van Ditzhuyzen told the NOS public broadcaster.
"An abdication takes a lot of organisation," Van Ditzhuyzen added.
State broadcaster NOS began broadcasting footage from significant moment's during the queen's soon after her speech was announced.
Beatrix chose to turn her palace into a "palace of work" in The Hague, the seat of government of the country with a strong work ethic.
But when renovations were announced at Beatrix's distinctive octagonal-shaped Drankensteyn castle southeast of Amsterdam in 2006, some saw a herald of her abdication.
Beatrix's German-born husband prince Klaus died in 2002 aged 76.
Dutch festivities during the coronation will be tinged by concerns for the health of Willem-Alexander's younger brother Prince Friso, who has been in a coma since being hit by an avalanche in Austria in February 2012.