Premier Kathy Dunderdale of Newfoundland and Labrador to resign: sources

ST. JOHN'S, N.L. - Sources say Kathy Dunderdale will step down Wednesday as premier of Newfoundland and Labrador after cutting a family vacation short over political upheaval.

Two sources say that key people in the province's Progressive Conservative party were informed of Dunderdale's decision Tuesday night.

The premier's office declined comment.

One of her most vocal defenders, Paul Lane, left the Tory government on Monday to join the Liberals.

One source says the premier had planned to hang on in power until at least the spring budget but Lane's departure changed that.

A second source says Finance Minister Tom Marshall is expected to serve as interim premier until a new leader is selected.