Dhami, a known Harish Rawat loayalist, submitted his resignation to Assembly Speaker Govind Singh Kunjwal.
The Speaker has accepted his resignation, Dhami told reporters here.
Dhami's resignation from Dharchula Assembly seat ends months of speculation over which of the seats the Chief Minister would chose to contest to make his entry into the state assembly.
Rawat who took over from Vijay Bahuguna as chief minister on February 1 this year has to become a member of the state Asseembly within six months of being sworn in.
Looking for a safe seat in view of Congress losing all Lok Sabha seats to BJP in Uttarakhand, Rawat was torn between two choices of Dharchula and Doiwala.
While Dhami had expressed his readiness to vacate his seat for the Chief Minister long back, there was also talk about Rawat preferring to contest from Doiwala, an Assembly segment of Haridwar Lok Sabha seat which he represented in the 15th Lok Sabha.
The only deterrent was his wife Renuka Rawat's performance in Doiwala segment in Lok Sabha polls where she finished behind her nearest rival and former chief minister Ramesh Pokhariyal Nishank by nearly 22000 votes.
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