"I announce my non-intervention in all political affairs and that there is no bloc that represents us from now on, nor any position inside or outside the government nor parliament," Sadr said in a written statement received by AFP today.
Sadr's group currently holds six cabinet posts as well as 40 seats in the 325-member parliament.
He also said his movement's political offices will be closed, but that others related to social welfare, media and education will remain open.
One official from Sadr's office told AFP that no one wanted to discuss the issue "because it was a surprise decision."
"I do not think it will be reversed... Because it is a very strong decision," the official added however.
If confirmed as permanent, Sadr's announcement brings to a close a political career spanning more than a decade.
It began with his sharp criticism of the 2003 US-led invasion of Iraq, with his movement subsequently gaining seats in parliament, cabinet posts and playing the role of political kingmaker.
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