The surprise move throws the selection of a Socialist candidate wide open.
The deeply unpopular president has seen his poll ratings plummet as France has been rocked by a series of crises.
Some polls have even shown his approval rating as low as 4% as France builds towards the election next year.
Sadly for Hollande, his premiership will likely be remembered mainly for the string of terror attacks that have plagued the country.
He was praised for his initial handling of the Charlie Hebdo Paris attacks.
But France remains in a state of emergency following subsequent terror strikes on Paris and later Nice.
It comes as the right wing presidential candidates Francois Fillon and the National Front”s Marine le Pen appear favourites to face-off for the top job.
The first round in the presidential election is in April.