Yemeni President Abed Rabbo Mansour Hadi dismissed the cabinet yesterday, firing the prime minister for the first time in two years.

At the same time Mr Hadi partially reversed an earlier decision to stop fuel subsidies in a bid to end a standoff with anti-government protesters across the country.

He publicly announced that he would be happy to appoint a unity government of “technocrats” but there was no response to the offer from Houthi dissidents.

Government officials said that the president would appoint a new prime minister within a week.

They said Mr Hadi had decided to remove the government during a meeting with representatives of political parties.

After appointing a new prime minister, the parties will nominate ministers from their own ranks, although Mr Hadi is expected to appoint the defence and interior ministers.

The decision comes a day after Houthi rebel leader Abdel-Malek al-Houthi escalated the confrontation with Mr Hadi by calling for civil disobedience.

He also urged the expansion of mass protests that have disrupted life in the capital for weeks.

The rebels had been demanding that the government step down and also reinstate fuel subsidies.

The Houthis’ ability to mobilise tens of thousands of activists for protests in the capital and set up sit-ins near several ministries put security authorities on alert.

A senior Yemeni security official claimed yesterday that the Houthis are plotting a revolution in the capital and that they plan to storm the cabinet and parliament over the coming days.