Yahya Jammeh has agreed to cede power to new leader, he said in an address on state TV.
He steps down after 22 years in power.
Jammeh's successor Adama Barrow told a press conference, 'the rule of fear is over' as he prepares to return to The Gambian after being sworn in as president in neighbouring Senegal on Thursday and
Senegalese troops have entered The Gambia as the incumbent leader refuses to step down, a spokesperson for their army has confirmed.
Adama Barrow was sworn in as the new Gambian president despite Yahya Jammeh's refusal to leave when his mandate ended at midnight.
The main opposition has said it is unhappy at the offer of asylum for Yahya Jammeh who had refused to step down as president.
Regional troops have secured the presidential palace in the Gambia's capital but there are fears the former leader has raided state coffers.
It ends a political standoff that briefly saw Yahya Jammeh and Adama Barrow claiming leadership of this tiny West African nation.