Bishop's distinguished career in politics, which saw her serve as Deputy under three Liberal leaders, will come to an end when the next general election is called. The announcement comes months after she quit her role as Foreign Affairs Minister following a failed leadership bid in August last year.
Following a turbulent week in the Liberal Party, which concluded with the end of Malcolm Turnbull's reign as Prime Minister, Bishop attempted to run for PM but was only able to secure 11 votes, including her own, out of 85 MPs.
She has since served on the backbench as the member for Curtin, a seat which she has held since 1998.
Prime Minister Scott Morrison acknowledged Ms Bishop's "tremendous service to her community, tremendous service to the party, the Liberal Party. "Her successor will have big shoes to fill and we know that Julie has big shoes," he said.
Opposition leader Bill Shorten paid tribute to Ms Bishop as a "trailblazer", citing her position as the first female foreign affairs minister and deputy Liberal leader. "There can never be an another first and no matter what she does in the future," he said. "It is the end of an era."