Bangladeshi Prime Minister Sheikh Hasina fled her palace on Monday, a source told AFP, as masses of protesters demanding her resignation roamed the streets of Dhaka and the army chief was set to address the nation.

Jubilant looking crowds waved flags, peacefully celebrating including some dancing on top of a tank, as a source close to the embattled leader said she had left her palace in the capital for a "safer place".

Hasina's son urged the country's security forces to block any takeover from her rule, while a senior advisor told AFP that her resignation was a "possibility" after being questioned as to whether she would quit.

"She wanted to record a speech, but she could not get an opportunity to do that," the source close to Hasina told AFP.

Bangladesh's army chief Waker-Uz-Zaman will address the nation on Monday afternoon, a military spokesman told AFP without giving further details.

Waker told officers on Saturday that the military "always stood by the people", according to an official statement.

The military declared an emergency in January 2007 after widespread political unrest and installed a military-backed caretaker government for two years.

Bd pratidin English/Lutful Hoque