It is said that he has taken this decision due to the collapse of the coalition government formed 17 months ago with the intervention of Draghi.
According to foreign media, Draghi met Italian President Serge Mattarella and submitted his resignation.
The president asked him to remain as caretaker leader and early elections are expected this autumn.
Accordingly, Draghi is expected to serve as Acting Prime Minister.
A motion of no confidence was brought against Draghi in the Senate of the Italian Parliament, which Draghi also defeated.
However, several major political groups in the coalition government refused to support Draghi, so he could not stay in office any longer.
The Italian Senate consists of 315 seats.
During the no-confidence vote in the Senate, Draghi's coalition government received 95 votes in favor and 36 votes against.