In a follow-up statement on Sunday, Farage said he will "leave the party in the capable hands of Richard Tice," the former Brexit Party chairman.
The former UK Independence Party (UKIP) leader's career has spanned for 30 years and was centered around getting the United Kingdom to leave the European Union.
In a video statement posted on Twitter, Farage talks of his political journey and describes getting the UK out of the European Union as his "life's work". The UK officially left the European Union on 31 January 2020.
"I think I have done everything I can possibly do", Farage adds.
Farage stepped down as UKIP leader after the 2016 Brexit referendum and reformed the Brexit Party in 2018 to lobby the government on its handling of the Brexit negotiations saying that if he had not reformed the Brexit Party, the UK "wouldn't have left" the European Union.
The Brexit Party was then renamed to Reform UK to reflect its new goal of campaigning for changes to the electoral system.
"I think now is the moment for me to say: 'Look, I have done it'", Farage says.
The now-former Reform UK party leader ends his video by saying he supports everything that Reform UK stands for and is "quite happy to have an honorary position within the party."
Farage is quick to clear up that he is not retiring, but is getting out of active political campaigns.
Since the UK has left the European Union last year, relations from both sides have soured with both sides accusing the other of acting in bad faith in relation to part of their trade agreement that covers goods movements to Northern Ireland.