The election is expected to be held on September 20, the Greek news agency ANA said, citing government sources.
"I will shortly meet with the president of the republic and present my resignation and that of my government," Tsipras said in a live televised address to the nation.
"I want to submit to the Greek people everything I have done (since taking office in January) so that they can decide once more," Tsipras said.
The move leaves Greece in the hands of a caretaker government until the vote.
Tsipras's announcement came after debt-crippled Greece paid a huge debt to the ECB today, effectively starting its third mammoth bailout, expected to cost as much as 86 billion euros (USD 96 billion) over the next three years.