A Croatian deputy prime minister has resigned amid a government deadlock, fueling prospects of early elections in the country.

Tomislav Karamarko announced he was stepping down Wednesday after a state commission found he was in conflict of interest due to his "friendly relations" with a lobbyist for Hungary's state oil company MOL, which has been in conflict with the Croatian government.

Karamarko is the leader of the senior partner in Croatia's governing coalition. His conservative Croatian Democratic Union party has been embroiled in a dispute with the smaller partner, the Most group. It has filed a motion to replace Prime Minister Tihomir Oreskovic in Parliament on Thursday, with an aim to reshuffle the government.

Oreskovic is an independent financial expert with no party affiliation.