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Farage tendered his resignation following his defeat in South Thanet to the Conservative candidate. He had previously said that the loss would mean "curtains" for him as leader.
However, it appears his party is not ready to see him go. Members of UKIP's National Executive Committee "unanimously rejected" the offer stating that the party's "general election campaign had been a great success", although it resulted in only a single seat in Parliament for the party.
Here's the full statement:
Statement from Steve Crowther, Chairman of UKIP:
"As promised Nigel Farage tendered his official resignation as leader of UKIP to the NEC. This offer was unanimously rejected by the NEC members who produced overwhelmingly evidence that the UKIP membership did not want Nigel to go.
"The NEC also concluded that UKIP's general election campaign had been a great success. We have fought a positive campaign with a very good manifesto and despite relentless, negative attacks and an astonishing last minute swing to the Conservatives over fear of the SNP, that in these circumstances, 4 million votes was an extraordinary achievement.
"On that basis Mr Farage withdrew his resignation and will remain leader of UKIP. In addition the NEC recognised that the referendum campaign has already begun this week and we need our best team to fight that campaign led by Nigel. He has therefore been persuaded by the NEC to withdraw his resignation and remains leader of UKIP."
In response Farage has withdrawn his resignation and remains leader of UKIP.