The flag-waving Algerians have celebrated the resignation of veteran president Abdelaziz Bouteflika, but vowed on Wednesday to keep protesting, to demand sweeping change to the country's political system.

The 82-year-old Bouteflika announced his departure on state media late on Tuesday, followed weeks of massive demonstrations that have shaken the North African nation.

Car horns sounded on the streets before jubilant crowds converged in the centre of the capital Algiers, to cheer Bouteflika’s departure.

Reports say many Algerians have never known any president other than Bouteflika who held power for two decades, but was rarely seen in public since suffering a stroke in 2013.

Protesters in Algiers welcomed his departure, but said they were determined to continue demonstrating, rejecting any transition that leaves power in the hands of the system.