Lebanon's Hariri abandons effort to form government

Lebanon's President Michel Suleiman (L) meets with Lebanon's prime minister-designate Saad al-Hariri at Beiteddine palace September 7, 2009.

BEIRUT (Reuters) - Lebanese prime minister-designate Saad al-Hariri said Thursday he was stepping down after more than 10 weeks of trying to form a unity government with opposition groups including Hezbollah.

The Syria- and Iran-backed Hezbollah and its allies rejected a draft government proposed by Hariri this week. Hariri, a Saudi- and U.S.-backed billionaire, said he had held "rounds and rounds of consultations which always ended in obstruction."

"I announce to all Lebanese that I told President Suleiman today that I will step down from forming a government, in the hope that this decision will be for the benefit of Lebanon," Hariri said after a meeting with President Michel Suleiman.

Suleiman is expected to call for a new round of consultations with lawmakers to nominate a new prime minister. It is widely expected that Hariri will be selected once again by members of his majority coalition.

(Reporting by Tom Perry and Yara Bayoumy; Editing by Samia Nakhoul)