(For factbox on Republicans seen as potential candidates for their party's nomination in 2012, click on [ID:nN03184162]

* Palin says to work 'outside government' for change

* Gives no indication of future plans

* Analysts speculate on possible bid for presidency

* Lieutenant Governor Sean Parnell takes over July 26 (Adds quote from former Alaska governor Knowles)

By Yereth Rosen

ANCHORAGE, Alaska, July 3 (Reuters) - Alaska Governor Sarah Palin, the Republican Party's vice presidential candidate in 2008, said on Friday she will resign this month, an unexpected move that could signal a run for higher office.

Palin took no questions after a brief news conference in her hometown of Wasilla, Alaska, members of her state Cabinet by her side. She gave no indication of her future plans.

"I'm not seeking re-election" in 2010, Palin said, adding she would transfer authority to Lieutenant Governor Sean Parnell on July 26.