KEVIN RUDD has announced his resignation as Australia’s Foreign Minister and will fly home from the US immediately, as speculation grows that he will challenge Prime Minister JULIA GILLARD for the leadership of the ALP next week.

The former PM, who was knifed by GILLARD in a leadership coup in June 2010, called an emergency media conference in Washington this afternoon our time, firing a thinly-veiled barrage at JULIA GILLARD and the “faceless men” who he says have taken control of the ALP.

"The truth is I can only serve as Foreign Minister if I have the confidence of Prime Minister Gillard and the ministers.

"In the past few days, Mr (Simon) Crean and a number of other faceless men have publicly attacked my credibility,” he said.

"The last time I resigned from a position of public office I was resigning as prime minister.

"I do so with a genuinely heavy heart, and with much personal reflection."

Mr Rudd said he will arrive home on Thursday and will consult with his family, staff and parliamentary colleagues about his next move:

(or listen here)

But he fired a devastating salvo at Prime Minister GILLARD and the way she seized his job, saying he would never be part of a “stealth attack” on a sitting prime minister who was elected by the Australian people.

Mr RUDD told the media conference the situation surrounding the party leadership had become a soap opera and he wanted nothing to do with it.

And he said JULIA GILLARD’s failure to repudiate senior minister CREAN’s attacks on his character has played a major role in his decision to quit:

(or listen here)

Mr RUDD has also hinted at a likely leadership challenge.

‘‘There is one overriding question for my colleagues and that is who is best placed to defeat Tony Abbott,’’ he said.