The World Bank president will leave his position in June, nearly a year ahead of when his term was set to expire.
Without giving a reason in particular, David Malpass made his decision public on social media.
He was selected by former US President Donald Trump and has come under fire for being a climate change denier.
When he claimed to be uncertain about whether fossil fuels were causing climate change last year, the White House reprimanded him.
He later expressed regret for the comments.
After working for the US Department of Treasury during the Trump administration, Mr. Malpass began his five-year term in April 2019.
Mr. Malpass made a statement in which he expressed his pride in his work at the bank, which manages annual lending to developing nations in the billions of dollars.
Under his direction, financing "including climate financing" had increased to record levels, he said.
By year's end, he predicted, "we will be well-positioned to feature sustainability more clearly in the mission of the World Bank Group, align the mission with resources, and set in motion an effective evolution to increase the institution's impact on people in the developing world.".
A controversial choice to lead the World Bank, Mr. Malpass had long been known for his skepticism of multilateral organizations.
Former US Vice President Al Gore demanded his replacement at a September event, claiming the bank was not doing enough to raise money for climate issues and that it was "ridiculous to have a climate denier as the head of the World Bank.". " .
When prompted to respond later, Mr. Malpass stood his ground but refrained from claiming that fossil fuels were to blame for global warming.
In a follow-up interview with CNN, he admitted that he had not heard or answered the question well and that man-made emissions were "clearly" a factor.
In a statement that made reference to the controversy, US Treasury Secretary Janet Yellen thanked Mr. Malpass for his service and pushed for reform at the World Bank and other development banks.
The World Bank has recently made significant progress in this area, she noted, "but we all must continue to raise our collective ambitions in the fight against climate change.".
She predicted that the US would soon present a fresh name for the bank's CEO position.
The World Bank's largest shareholder and primary source of funding is the United States.
Since the institution's founding in the 1940s, when it was developed to aid in Europe's post-World war II reconstruction, an American has served as its head.
