84-year old Krishna has written to Congress President Sonia Gandhi conveying his decision, the sources told PTI here.
Asked about it, the former Minister for External Affairs declined to react, saying, "tomorrow. Tomorrow."
He has called a press conference tomorrow, where he is expected to give details about his decision and his future plan of action.
Krishna, who was the state Chief Minister from 1999 to 2004 and a former Maharashtra Governor, is reportedly miffed at being sidelined in the party, with which he has more than five-decades-old association.
As the news broke out, apparently surprised state Congress leaders said they were not aware of the development and rushed to his residence to meet Krishna who was away at a function.
"I am not aware of it. If it is true, I can't even believe it. I do not want to react now," KPCC President and state Home Minister G Parameshwara told reporters.
"We had not sidelined him in any matter from any angle. He is one of the most likeable leaders of our party...The party had not sidelined him," he said.
"Without officially knowing I can't react. "Krishna is a senior leader who has always played politics with dignity. He has always played positive politics," he said.
(Reopens MDS12)
Siddaramaiah also said that he was not aware of the development.
"I am not aware of it," said an apparently annoyed Siddaramaiah, when reporters persisted with the question on the exit of Krishna.
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