Field Marshal Sisi, 59, who led the military coup that overthrew President Mohammed Morsi last July, tendered his resignation to the Supreme Council of the Armed Forces (SCAP).
In a televised statement, Sisi said that he has resigned from the army and intends to run for the country's presidency.
"Today is the last time you'll see me wearing this [military] uniform. I was honored to wear it to defend the nation and today I am also leaving it behind to defend the nation," said El-Sisi, stressing that he has been a member of the armed forces for over 45 years.
"My determination to run in the election does not bar others from their right to run. I will be happy if whoever the people choose succeeds," he said, adding that he hopes for "a nation for all without exclusion".
Sisi has been expected to run for the presidency ever since he overthrew Morsi of the Muslim Brotherhood, who appointed him, thus cementing his position as the country's new political force.
He had to resign as defence minister and from the army to run for the president. As per Egyptian law which stipulates that military personnel are not allowed to enter politics.
Sisi faces no serious competition in the upcoming election, likely before June, and is expected to easily win the poll riding on a wave of popularity.
SCAF in a statement earlier had stated that it welcomed "the people's demands for Al-Sisi to run for President".
The Egyptian army's Chief of Staff Sedki Sobhi has been promoted by interim President Adly Mansour to the rank of colonel general, a title that has historically been held only by Egyptian defence ministers, according to state-run TV.
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