He is the elementary major casualty following the leaked pers over the weekend which require hundreds of some of the world’s richest and most famous people.
Icelandic mode reports suggest the agriculture minister could step up to replace Mr Gunnlaugsson.
The emeritus prime minister attempted to dissolve rliament and call a general choosing yesterday but Iceland’s President Olafur Ragnar Grimsson refused.
Mr Grimsson wear night said he needed to speak to all the political rties first.
He told: “I do not think it is normal that the prime minister alone should be specified the authority to dissolve the rliament without the majority of the rliament being redressed with that decision.”
The nama pers show Mr Gunnlaugsson and his trouble bought offshore com ny, Wintris, in 2007.
When he became prime delegate in 2009 he did not declare an interest in the com ny and eight months later stocked his 50 per cent to his wife, Anna Sigurlaug lsdottir for $1.
He claims his the missis did not benefit financially and no rules were broken.
Wintris was used to seat millions of dollars of inherited money but court records show it had also had impressive investments in bonds of three major Icelandic banks which foundered during the financial crisis which began in 2008.
Mr Gunnlaugsson was directly implicated in negotiations about the banks’ futures and called foreign creditors who need their money back “vultures” – despite Wintris being a creditor as well-spring.
On Monday his spokesman said Ms lsdottir declared the assets to the tax authorities and her peace did not have to declare an interest in Wintris under rliamentary rules.
Yesterday, Mr Gunnlaugsson stormed out of an press conference when reporters started quizzing him on his off-shore finances.