The leader of Spain's main opposition Socialist Party, Alfredo Perez Rubalcaba, said he was severing all contact with the prime minister and his party on Saturday.
"Given the unsustainable political situation in Spain, the Socialist Party calls for the immediate resignation of Mariano Rajoy as head of the government," he told reporters in Madrid.
"Mr Rajoy's conduct in this situation can be summarised quite simply: silence, lies, and after what we have learned today, collusion, extremely serious collusion," Rubalcaba said.
Dozens of protesters, outraged by the corruption allegations at a time of recession and record unemployment, rallied outside the Popular Party's Madrid headquarters, chanting "Thieves!" and "Here is Ali Babi's cave!".
The centre-right daily El Mundo newspaper published images of the alleged text messages between Rajoy and Luis Barcenas, the former ruling party treasurer who is in pre-trial detention as part of a separate corruption inquiry.
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Assembly Elections 2017 Uttar Pradesh (403/403) Punjab (117/117) Goa (38/40) Party Lead Won Total SP+INC 38 28 66 BJP + 193 119 312 BSP 10 10 20 RLD 00 01 1 Others 03 01 4 Party Lead Won Total SAD+BJP 01 16 17 INC 04 74 78 AAP 00 20 20 BSP 0 0 0 Others 00 02 2 Party Lead Won Total BJP 02 12 14 INC 01 13 14 AAP 0 0 0 MGP + 00 03 3 Others 00 07 7 Uttarakhand (70/70) Manipur (60/60) Party Lead Won Total INC 04 07 11 BJP 15 42 57 BSP 0 0 0 UKD 0 0 0 Others 01 01 2 Party Lead Won Total INC 09 16 25 BJP 06 18 24 AITC 0 01 1 NPF 01 03 4 Others 02 04 6
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