Canadian Prime Minister Justin Trudeau's chances of staying on in power have become more tenuous after the opposition party that backed his government for years said it will vote no confidence in the government when Parliament resumes.

Chrystia Freeland said she was quitting in the wake of a meeting last Friday with Trudeau, who asked her to take on a lesser post after the two had been arguing for weeks over spending.

Freeland cited conflict with Prime Minister Justin Trudeau over the direction of fiscal policy.