Ms Merkel's decision to step down echoes that of her predecessor, Gerhard Schroeder, who quit as leader of his centre-left Social Democrats in 2004 as his government struggled, but remained chancellor.
This is a breaking news story and will be updated.
While she will remain Chancellor of Germany, media reports say she will not stand for the CDU leadership bid again and that she'll put forward her candidacy at a CDU party conference in Hamburg on 7-8 December this year.
Her CDU party was severely weakened in elections in the state of Hesse on Sunday, the latest poor performance by parties in her coalition government.
"We are witnessing a continuation of the pattern in place ever since Merkel's mistakes in the 2015 migration crisis: the gradual but steady erosion of her political power", said Carsten Nickel, managing director at Teneo, a consultancy. Merkel said Kramp-Karrenbauer and Spahn plan to run for the CDU post.
Merkel's conservative Christian Democrats (CDU) came home first in the election in the western state of Hesse, but polled just 27.2 percent of the vote, projections for broadcaster ZDF based on preliminary results showed.
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Also on Sunday, in addition to holding talks in what is now their 11 bilateral, the two leaders visited a robot factory. He arrived Saturday and was invited to Abe's vacation house near Mount Fuji on Sunday for private talks.
The turmoil within the CDU is echoed on the other side of the political aisle, in the SPD, which also suffered dramatic losses in both state elections. The AfD party has representatives in all 16 states in Germany. After 13 years as Germany's head of government and eighteen at the head of the Christian Democratic Union, Angela Merkel announced that her current four-year term would be her last.
Merkel will continue as chancellor, a post she's had since 2005.
The CDU's general secretary, Annegret Kramp-Karrenbauer, said the coalition needs to identify "three concrete projects for the coming months that we implement".
After speculation by media and politicians alike around why the chancellor made the announcement, Ms. Merkel said she had chose to signal that she had heard the message voters were sending. That was enough to give the CDU a win but was the party's worst showing since 1966 and a drop of 11 percentage points since Hesse's last election, in 2013.
Merkel's coalition was twice on the brink of collapse, once over immigration policy and then over a dispute about the fate of the domestic intelligence chief who was accused of harbouring far-right views.
"The time has come to open a new chapter", Merkel said.
Potential successors include Annegret Kramp-Karrenbauer, General Secretary of the CDU; Jens Spahn, Health Minister; Armin Laschet, Prime Minister of North-Rhine-Westphalia; Julia Klöckner, Agriculture Minister; Daniel Günther, Prime Minister of Schleswig-Holstein and Friedrich Merz, former Merkel rival, now inactive.
"The message to the parties ruling in Berlin is: People want fewer disputes and more focus on the important issues", he said.
Bolsonaro has had a strong lead in polls, but Haddad got a string of last-minute endorsements ahead of Sunday's vote. Haddad, his opponent, joined Brazil's presidential race less than a month before the first round of voting .
It is expected to start at $579 in the USA and could be available at a starting price of Rs 34,999 or slightly higher in India. The smartphone maker has already confirmed that OnePlus 6T will be released sans the traditional 3.5mm headphone jack.
Angela Merkel is to stand down as leader of her party but wants to remain as chancellor of Germany, according to reports. German Chancellor Angela Merkel has told a news conference on Monday that she will not be a candidate for a new mandate.
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The CDU result marks a huge drop from the 38.3 percent won by the party during Hesse's last election in 2013. The pro-business Free Democrats were seen winning above 7 per cent and the Left Party around 6.5 per cent.
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