Former ANC party leader will now concentrate on his State duties while Lamu Governor Issa Timamy will steer party affairs as party leader in an acting capacity.
President Ruto lauded for keeping his promises to his allies.
Mr Mudavadi first vied for the presidency in 2013 and in 2017 endorsed Azimio leader Raila who contested for the top seat on the defunct National Super Alliance (Nasa) ticket.
The Prime Cabinet Secretary (PCM) Musalia Mudavadi has deferred his quest for the presidency and will serve in his current position after he relinquished his party leadership position in the Amani National Congress (ANC).
Party officials on Thursday told Journalists at the Amani House in Nairobi that the immediate former ANC party leader will now concentrate on his State duties while Lamu Governor Issa Timamy will steer party affairs as party leader in an acting capacity.