Local Turkish media have been running stories about Prime Minister Ahmet Davutoglu's intention to step down.

Tensions have been on the rise between Davutoglu and the head of state, Recep Tayyip Erdogan, as the latter is seeking to introduce an executive presidency through constitutional changes.

Austrian Der Standard's Turkey correspondent and other German-language media quote the local press in Turkey as saying he is yet to take the decision.

Davutoglu reportedly said he was ready to "step down" if necessary.

He heads the Justice and Development Party (AKP) co-founded by Erdogan, who had to publicly distance himself from the country's biggest party following the presidential election which he won in August 2014.

Erdogan has made little secret of his plans to introduce a presidential system in the country, while the AKP itself has recently been taking steps to curb Davutoglu's powers as head of the government.

Turkish Energy Minister Berat Albayrak or Transport Minister Binali Yildirim have been considered as possible successors by Erdogan, Die Zeit writes quoting "press reports".

Erdogan and Davutoglu are now set to meet at 18:00 local time.

Meanwhile, H?rriyet Daily News reported the tensions between the two are rattling the markets, with concerns about a possible impact on monetary policy.