London: BBC Director General Greg Dyke today (Jan 29, 2004) resigned in the wake of a judicial inquiry castigating the news organisation for accusing the Tony Blair Government of "sexing up" a dossier on Iraq's weapons of mass destruction (WMDs) before the US-led war.

Dyke resigned a day after BBC Chairman Gavyn Davies stepped down, shortly after Judge Brian Hutton criticised the Corporation for its report.

After stepping down, Dyke told reporters that he hoped the resignations by the two meant "a line can be drawn under this whole episode".

"My position as Director General of the BBC has inevitably been compromised by the criticism of BBC management in Hutton report," an emotional Dyke said.

"I think my going is very important in preserving the BBC's editorial independence."

Lord Hutton's 328-page report cleared the Government of "sexing up" its Iraq weapons dossier with unreliable intelligence.

Reacting to Blair's demand for apology from BBC, Dyke said it would be for the governors to decide how to respond to Downing Street's demands.

Hutton criticised BBC's editorial controls over Defence correspondent Andrew Gilligan, who broadcast the report.

Dyke's decision to resign came after BBC governors' crisis talks. His Deputy Mark Byford has been appointed as Acting Director General until a successor is chosen.