TEHRAN, Young Journalists Club (YJC) - The crisis erupted last week and could have led to snap elections before Christmas, at a critical time for Ireland ahead of an EU summit where the future of the Irish border after Brexit will dominate.
RTE said Fitzgerland told cabinet colleagues that she was "resigning for the sake of the country and to avoid a general election".
The resignation means that a no-confidence motion put forward in parliament by the main opposition Fianna Fail party "has been dropped and so too has the threat of a pre-Christmas election," RTE reported.
Fianna Fail has propped up Prime Minister Leo Varadkar's minority government since an inconclusive general election in 2016.
The crisis erupted last week, just as Ireland is trying to extract guarantees from Britain that its border with British-ruled Northern Ireland will remain open even after Brexit ahead of the EU summit next month.
Britain has said it wants to leave the EU's single market and customs union when it quits the EU, which could mean customs checks along the Irish border.
Dublin has asked for Northern Ireland to be granted a special customs status to keep the border open.
But London says this would create a new border between Northern Ireland and the rest of Britain.
Towards a transition?
The issue will top the agenda for the December 14-15 summit in Brussels which is due to decide whether or not to begin negotiations with Britain on a possible post-Brexit transition period and future trade ties.
The domestic political crisis in Ireland has been brewing ever since a police whistleblower scandal dating back to 2015 and centered on Fitzgerald's role at the time when she was justice minister.
Varadkar had refused to sack Fitzgerald and she had ruled it out as late as Monday, saying she would instead give evidence to a judicial inquiry instead.
According to the latest poll by Red C for the Sunday Business Post, Fine Gael would get 27 percent of the vote, followed by Fianna Fail on 26 percent and Sinn Fein on 16 percent, raising the prospect of another minority government if there were elections.