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The two top editors at The New York Times resigned in a dramatic move to repair the damage inflicted on the reputation of one of the world's most prestigious newspapers by a reporting fraud scandal.

"This is a day that breaks my heart," said Times publisher Arthur Sulzberger as he informed staff at an emotional morning meeting that executive editor Howell Raines and managing editor Gerald Boyd were stepping down.

"I have accepted (the resignations) with sadness based on what we believe is best for The Times," Sulzberger said in a formal statement.

Raines, 60, and Boyd, 52, are the highest-ranking casualties of the scandal surrounding reporter Jayson Blair, who resigned from the Times on May 1 amid revelations he had plagiarized and fabricated information in numerous articles.

A report on the Times website said many staff members "sobbed audibly" as Raines made a brief farewell speech.

"I want to thank you for the honor and privilege of being a member of the best journalistic community in the world," Raines said.

"Remember, when a great story breaks out, go like hell," he added.

There had been widespread speculation that the two editors might step down, following criticism that they allowed the 27-year-old Blair to cover major stories -- like the Washington sniper -- despite concerns that had been raised over his reports.

The Blair scandal prompted a period of intense soul-searching at the Times, which, in its 152-year history, has prided itself on being the "paper of record."

The publishers launched a major investigation into reporting standards that resulted in the resignation a week ago of Pulitzer Prize-winning correspondent Rick Bragg.

Bragg was accused of improperly using the reporting of a freelance journalist for a bylined feature article.

The latest slingshot fired at the newspaper came earlier this week when the US Justice Department, in an unusual public complaint, said a Times reporter misquoted a senior department official's testimony.

"While the past few weeks have been difficult, we remain steadfast in our commitment to our employees, our readers and our advertisers to produce the best newspaper we can by adhering to the highest standards of integrity and journalism," Sulzberger said.

In a statement reacting to the latest resignations, Blair voiced regret that his actions had caused others to lose their jobs.

"I am sorry to hear that more people have fallen in this sequence of events that I had unleashed," Blair said. "I wish the rolling heads had stopped with mine."

The Times said a former executive editor, Joseph Lelyveld, would replace Raines in the interim.

Raines, whose style of leadership had been criticised by some as autocratic, had accepted responsibility for the Blair imbroglio when it broke, but had initially declined to hand in his resignation.

A Pulitzer Prize winning writer, Raines was appointed executive editor of the Times in 2001, just days before the September 11 terrorist attacks.

The following year, the newspaper won a record seven Pulitzer prizes -- five of them for its September 11-related coverage.

Lena Williams, a Times union representative and reporter of nearly 30 years, said the resignations marked a "very sad day" in the newspaper's history.

"The fact that two top journalists in this country have had to step down is not something you are going to see anybody in The New York Times dancing in the aisles over," Williams said.

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