In announcing his exit, the 79-year-old Swiss has called an extraordinary FIFA congress "as soon as possible" to elect a new president.
Blatter was re-elected last week, despite the arrest of seven top FIFA officials two days before the vote as part of a US prosecution.
''I am very much linked to FIFA and its interests. Those interests are dear to me and this is why I am taking this decision," added Blatter."I have thoroughly considered and thought about my presidency and the last 40 years in my life. These years were closely related to FIFA and the wonderful sport of football. I appreciate and love FIFA more than anything else. I only want to do the best for FIFA and my institution. I decided to stand again as the best option for football. The elections are closed but the challenges we face haven't come to an end. What counts most to me is the institute of FIFA and football around the world.The extraordinary congress is expected to take place between December 2015 and March 2016.
The latest allegations of corruption against Fifa involved reports claiming general secretary Jerome Valcke was responsible for an alleged $10m (£6m) payment of bribes over South Africa's bid to host the 2010 World Cup.
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