He will step down as MP for Witney in Oxfordshire, triggering a by-election in his constituency. He has represented Witney since 2001, becoming Conservative leader in 2005 and serving as prime minister for six years from 2010.
The 49-year-old Conservative party MP had stepped down as Prime Minister on June 24, a day after the UK voted to leave the European Union (EU).
"Having fully considered my position over the summer, I have decided that I am going to stand down as the Member of Parliament for Witney. There will now be a by-election and I will do everything that I can to help the Conservative candidate win that election," Cameron said in a statement.
He said: "In my view, the circumstances of my resignation as Prime Minister and the realities of modern politics make it very difficult to continue on the backbenches without the risk of becoming a diversion to the important decisions that lie ahead for my successor in Downing Street and the government.
It is unclear what Cameron's future career plans would involve but he said he now looks forward to "a life outside of Westminster, but hope to continue to play a part in public service and to make a real and useful contribution to the country I love".
The former Conservative party leader was praised for modernising the party and last year guided the party to its first outright majority for 23 years.
His tenure as Prime Minister, however, came to an abrupt end when he failed to convince the British public to vote to remain within the EU.
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