Thai Prime Minister Yingluck Shinawatra says she will dissolve parliament and call an election, after sustained protests in the capital, Bangkok.

The move followed the resignation of all opposition MPs from parliament on Sunday, and a planned march on Government House on Monday.

However the protesters alleged that her government is controlled by ousted leader Thaksin Shinawatra, and have vowed to continue the demonstrations.

The announcement came as Ms Yingluck addressed the nation on television.

"At this stage, when there are many people opposed to the government from many groups, the best way is to give back the power to the Thai people and hold an election," she said. "So the Thai people will decide."

No date was given for the polls but Ms Yingluck said they would be held "as soon as possible".

In the general election in July 2011, Ms Yingluck's Pheu Thai party won a majority, with 265 seats to the Democrat Party's 159 seats.

Pheu Thai draws considerable support from mainly poor and rural areas of Thailand, and would be seen as well-placed to win an election.