The United Nations (UN) welcomes the decision by Fayez Serraj, the UN-backed Libyan prime minister, to step down by the end of October, according to a UN statement released Thursday.

"I commend the courageous decision by Mr. Fayez Serraj, the president of the Presidency Council of the Government of National Accord, in announcing his intention to hand over power to a new executive authority by the end of October," Acting Special Representative of the UN Secretary-General to Libya Stephanie Williams said in the statement.

"The president's announcement comes at a decisive turning point in Libya's longstanding crisis, when it is clear that the situation is no longer sustainable," said the statement.

"The onus is now on concerned Libyan parties to fully shoulder their responsibilities before the Libyan people, to take historic decisions, and to accept mutual concessions for the sake of their country," the statement added.

Serraj on Wednesday announced his intention to step down in October and hand over power to a newly appointed government.

Serraj's UN-backed government was established in 2015 based on a UN-sponsored political agreement aimed at ending the political division in the country.

However, despite the agreement, Libya remains politically divided amid insecurity and chaos.