Embattled Republican politician Tom DeLay will not attempt to reclaim his post as majority leader of the US House of Representatives, officials say.
Mr DeLay was forced to step aside temporarily after he was indicted in Texas on a campaign finance case.
The politician is accused of laundering corporate contributions for use in Republican campaigns in the state.
He has maintained his innocence and had until now said he intended to resume his leadership post once cleared.
His decision to quit clears the way for Republicans to choose a new leader to represent them in the House of Representatives.
Mr DeLay, a close ally of President George W Bush, was one of the most powerful politicians in Washington before his indictment in September.
Mr DeLay's spokesman said the politician would retain his seat in the House, Reuters news agency reported.
Krauthammer was just on Fox saying Abramoff investigation is what brought Delay down. Two scandals at once and the fact that Abramoff investigation is going to take too long. It'll hurt the Party. I fear Bush is a lame duck.