Flanked by the country's top brass, his speech left Zimbabweans shocked after he remained defiant in clinging to the presidency.
A special Zanu-PF Central Committee meeting is now underway in Harare to recall the revolutionary party's First Secretary Cde Robert Mugabe from his position.The meeting is being chaired by Cde Obert Mpofu who is Zanu-PF's Secretary for Finance.
The newspaper also says ministers are expected to sign off an improved financial offer to the European Union, the so-called Brexit divorce bill, in a bid to break a deadlock in negotiations.
Patrick Zhuwao told the Reuters news agency that Grace Mugabe is ready to die for what is correct.
First, he warned that he was not going anywhere, and was coming back "in a few weeks" to boot out Mugabe and his eccentric wife First Lady Grace from the ruling Zanu PF party and take over control of all the levers of power. "He has up to noon today or face impeachment".
The party added that it would impeach Mr. Mugabe if he did not resign by Monday and Mr. Mnangagwa would be its candidate in the 2018 elections. "Your time is up", veterans association leader Chris Mutsvangwa told reporters on Sunday night.
The opposition leader says the upheaval could undermine the opportunity for a "fresh start" after moves by the military and others against Mugabe.
"Save the country further turmoil". "We must learn to forgive and resolve contradictions, real or perceived, in a comradely Zimbabwean spirit", said Mugabe.
"This time there will be a sit-in. In this case we were hoping this was an opportunity for him to go in a dignified manner". "He's lost his marbles".
A businessman based in Harare said: "I was expecting his resignation, I am disappointed it didn't come so easy".
On paper, the process is relatively long-winded, involving a joint sitting of the Senate and National Assembly, then a nine-member committee of senators, then another joint sitting to confirm his dismissal with a two-thirds majority.
But constitutional experts said on Monday that Zanu-PF had the numbers and could push it through in as little as 24 hours.
When Mugabe refused to step down following behind-the-scenes talks, the generals unleashed people power.
Chinamasa also announced that the ruling party would amend the Zanu PF constitution and remove the notion of one centre of power which had resulted in Mugabe being the sole signatory of everything in the party that was formed in 1963.
Meanwhile President Mugabe this afternoon met with the Generals at State House.
Zanu-PF reinstated and elevated Mnangagwa - the man tipped to succeed Mugabe - as the party's first secretary, the position Mugabe held.
President Mugabe, who has been in charge of the country for 37 years, is understood to be "fine" but confined to his home. He would be named as acting leader - something the army wants to avoid.
November 17: The army, which continues to refer to Mugabe as president, allows him to make his first public appearance since house arrest.