Mr Rann was informed of a dual-factional move on the Friday prior to his departure of a bid to replace him as leader with Education Minister Jay Weatherill.
Since the announcement, Premier Rann had remained silent on the leadership challenge, preferring to concentrate on the trade mission he was undertaking in India.
Mr Rann, with Mr Weatherill at his right shoulder, told the awaiting media that it had been 'well known in senior Labour circles' that he had wished to step down in the near future from the leadership role.
The Premier said that he had advised colleagues that his preferred timing to pass on the leadership would have been March, 2012, but which time he would have accomplished the task of securing a $30 billion expansion of Olympic Dam.
"My intention to stay as Premier until March of 2012 has, however, affected by the events of the past 10 days," Mr Rann said.
He said he endorsed Minister Jay Weatherill as the next leader of the party.
"The people of South Australia elected me, and they have a right to when and why I am stepping down.
"So I have therefore determined that in order to complete the job I have to do, and to best assist Jay and the government in the leadership transition, that I will step down from the Office of Premier on the 20th of October," Mr Rann said.
It is unknown if he will step down from other ministerial duties, or completely withdraw from the cabinet.
Mr Rann was first elected into South Australia's Parliament as the member for Briggs in 1985.
He became leader of the Opposition in September 1994, after holding ministries in Employment, Further Education, Youth Affairs, Aboriginal Affairs, Business and Regional Development, Tourism and State Services portfolios.
He lead the ALP into elections in 1997 and 2002, with a victorious result in the 2002 election making Mr Rann the state's 44th Premier.
Mr Rann was born in Sidcup, Kent in 1953.
He later studied politics at Auckland University, was editor of the University's student newspaper, and after graduating became political reporter for Radio New Zealand.
In 1977 Mr Rann moved to South Australia to become adviser, press secretary and speech writer for Don Dunstan, Des Corcoran and John Bannon.
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