'I am ready to let go (of the position). I am ready to go. Monday... or even tomorrow if Palanivel feels that he is ready to take over the party leadership. I am ready to pass the leadership to him.'

Vellu, who became party acting president in 1979 before elected as MIC president in 1981, was re-elected for his 11th consecutive term in April. As such his term is to last till 2012.

But he has been under pressure to step down since the party fared badly in the general election last year. It was reduced to three members in parliament and Vellu himself lost his re-election.

However, there are indications that the prime minister may force the issue when he meets Vellu.

But Razak has said that he did not want to be seen as 'interfering' in MIC's affairs.