Embattled New York Gov. Eliot Spitzer has yielded to the intense pressure to resign over his prostitution scandal.

Spitzer's wife Silda was beside him as made his announcement in New York on Monday. Spitzer's resignation will be effective as of March 17.

"To those whom much is given, much is expected," Spitzer told his news conference. "I'm deeply sorry that I did not live up to what expected of me."

Lieutenant governor David Paterson will replace Spitzer and become the state's first black governor. Paterson is legally blind, but can recognize people and read text at very close distances.

Spitzer said he couldn't allow his "private failings to disrupt the people's work" and that he would do what he must to heal. He also suggested he would serve the public again at some future point, but outside of politics.

The Spitzer scandal has rocked New York for the last three days and has become a sensational international story. His mother-in-law spoke out Wednesday about the ordeal. Silda Spitzer's mother, Trilby Wall, did not say if she forgives the soon-to-be ex-governor.

"Don't you think it's enough to say we love and support Eliot and let it go there? It's very hard," she said.

"It's very hard. Love is a very big word. And it takes a lot of the first to overcome the second. You handle the second."

CTV's Tom Clark told Canada AM that Spitzer never confessed to being a customer of a high-end prostitution ring. "He never said he went to room 847 of the Mayflower hotel where he paid Kristen $4,300 for less than two hours," he said.

Spitzer's resignation announcement this morning will please New York's residents, if a poll is an accurate measure of public opinion.

The poll, released late Tuesday by the Marist College Institute for Public Opinion, found 70 per cent think Spitzer should step down.

Sixty-six per cent would have supported the impeachment option.

The survey was conducted Tuesday by telephone and polled 624 people, with a margin of error of plus or minus four per cent.

New York City Mayor Michael Bloomberg said Wednesday that it was time for the state to move past the scandal.

"My thoughts are with the governor and his family at this difficult time and I think what we have to do now is to move forward," he said.

On Monday afternoon, a bombshell dropped when it became known that Spitzer, once a crusading prosecutor, had used the services of a high-priced call girl.

Investigators alleged Tuesday that the married father of three may have spent up to US$80,000 on such affairs. Spitzer has become known as "Client 9" of the Emperor's Club V.I.P. The Emperor's Club made news last week when four people allegedly involved with the group were arrested.

Spitzer had reportedly been in seclusion with his family. Silda, who appeared shellshocked during her joint appearance with him on Monday, had urged him to say on, the New York Times reported Wednesday. It cited Spitzer aides.

State Republicans gave him 48 hours to step down or face impeachment. Almost no Democrats came forward to defend him.

Jacob Frenkel, a former U.S. federal prosecutor, told CTV's Canada AM on Wednesday that the "bargaining chip" aspect of a resignation may be a key consideration for Spitzer.

The governor had the call girl Kristen travel from New York to Washington for their US$4,300 Feb. 13 tryst in a swanky hotel.

"He has genuinely put himself in the crosshairs of prosecutors," Frenkel said, noting that transporting someone across state lines for the purposes of prostitution is a federal offence in the U.S.

However, there are a number of other offences with which Spitzer could be charged, he said.

There is also the issue of enticement across state lines, and possibly even money-laundering, given the way Spitzer broke up bank transactions into small pieces to avoid currency reporting rules, Frenkel said.

Investigators will also likely be trying to determine if any state funds were used, he said.

"Gov. Spitzer would love to get this wrapped up before investigators and prosecutors really get into the depth of what he may have done," he said.

U.S. Attorney Michael Garcia issued a statement after the resignation announcement that "there is no agreement between this office and Governor Eliot Spitzer, relating to his resignation or any other matter."

Spitzer took office on Jan. 1, 2007 after winning a landslide victory. He built his name fighting Wall Street with puritanical zeal. Ironically, he also prosecuted some prostitution rings.

But he has struggled as governor. In January, his approval rating was only 35 per cent.

With files from The Associated Press