Merkel, who has been Chancellor since 2005, made the announcement during a news conference yesterday in Berlin.
"It is time today for me to start a new chapter," Merkel told reporters in Berlin.
"This fourth term is my last term as Chancellor of the Federal Republic of Germany. In the next Bundestag election in 2021, I will not run again as Chancellor. I will not run for the German Bundestag any more, and I do not want any other political office."
Merkel told reporters that being Chancellor has been a "very challenging and fulfilling task."
Merkel's decision appears to mark the beginning of the end of her 13-year dominance of European politics.
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