Maria Miller has resigned as culture secretary following a row over her expenses.
In a letter to the prime minister, she said the controversy "has become a distraction from the vital work this government is doing".
The PM said he hoped she would be able to return to cabinet "in due course".
Mrs Miller was cleared of funding a home for her parents at taxpayers' expense, but was told to repay £5,800 of the expenses she claimed.
The independent parliamentary commissioner for standards had previously recommended she repay £45,000.
But the lower sum was approved by the Commons Standards Committee, which has the final say on whether to accept the commissioner's recommendations - a decision which sparked a backlash across the political spectrum and calls for changes in how complaints against MPs are investigated.
'Hurtful'End Quote Nick Robinson BBC political editorThis decision is a defeat for a minister who believes she has been found not guilty on the central charge of asking the taxpayer to pay for a home for her elderly parents"
The committee also criticised her "attitude" during the investigation, which it ruled was a breach of the parliamentary code of conduct.
Mrs Miller apologised in the Commons, but was criticised for the brevity of the statement she made.
David Cameron's official spokesman said the PM and Mrs Miller discussed her future on Tuesday night and her resignation was confirmed on Wednesday morning.
Education Secretary Michael Gove said he was "saddened" by the news.
"She worked incredibly hard as part of a team," he told BBC Radio 4's Today programme. "She has done some brave and right things, not least that equal marriage is now on the statute book."
Mr Gove, a former journalist, said he "would not criticise the press", but said: "Over the course of the a last couple of days the pressure on Maria Miller grew more intense.
"Some of the criticism directed as her had been very personal, and it must have been hurtful," he continued.
He also commended Mr Cameron's defence of Mrs Miller, arguing that his "loyalty, that desire to think the best of those who work with him, is a virtue".
"I don't think his judgement has been flawed," he said.
"The prime minister's attitude throughout has been governed by the basic human decency that is his hallmark."
It comes a day before Parliament breaks for its Easter recess and ahead of a session of Prime Minister's Questions at which Mr Cameron was expected to come under pressure over the row.
'Incandescent'Labour MP John Mann, whose complaint sparked the investigation into Mrs Miller's expenses, welcomed her resignation.
"My reaction is it's about time too... Maria Miller should have resigned immediately and when she didn't resign, David Cameron should have shown a bit of leadership and he should have sacked her," he told BBC Radio 4's Today programme.
"There is a difference between loyalty and blind loyalty," he continued later.
Voters were "incandescent" about Mrs Miller's expenses claims and Mr Cameron's "failure to act" had been "incomprehensible to most people", Mr Mann said.
He also said that criticism of the media's role in the affair was "total rubbish".
"There's only one person who is responsible for Maria Miller's behaviour and that's Maria Miller, and there's only one person who is responsible for David Cameron's indecisiveness, and that's David Cameron. They should stop briefing and attacking other people.
"There's a word missing in British politics these days and that's honour, and I would define honour as: if you've done something wrong, as a cabinet minister, you resign - and if you don't resign you get sacked."
The BBC's political editor Nick Robinson said the government had tried to deal with the row by stressing that Mrs Miller had done what she was asked to do the committee of standards and privileges "and that's where the matter rests".
But, added Robinson, the tactic had failed spectacularly.
'Devastated'He said the public viewed Mrs Miller as, at best, over-claiming thousands of pounds - at worst, tens of thousands - and if the rules had applied to them they would have been sacked or put in prison.
He added that Labour leader Ed Miliband would still be able to use the row against Mr Cameron at PMQ's later, asking him "What on earth were you doing?" backing Mrs Miller.
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Maria Miller: "I fully accept the recommendations of the committee and thank them for bringing this matter to an end"
In her letter, Mrs Miller said she was "immensely proud" of her work in cabinet, including "putting in place the legislation to enable all couples to have the opportunity to marry regardless of their sexuality".
She also acknowledged that her role in "implementing the recommendations made by Lord Justice Leveson on the future of media regulation, following the phone hacking scandals, would always be controversial for the press".
The prime minister said he was sorry to receive Mrs Miller's resignation but accepted her decision.
"I think it is important to be clear that the Committee on Standards cleared you of the unfounded allegations made against you, a point which has been lost in much of the comment in recent days," he wrote.
On Tuesday, in her weekly column in the local newspaper in her constituency, the Basingstoke Gazette, Mrs Miller told voters: "I am devastated that this has happened, and that I have let you down.
"I have been subject to an intense Parliamentary inquiry looking at extensive personal details of my family life, as a result of allegations made by a Labour MP.
"That committee has now published its report and I have accepted their findings in full. I have unreservedly apologised for the way I handled and approached the inquiry."
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