The veteran actor made the decision after sexual harassment claims were made against him.
Tambor, 73, released a statement on Sunday saying playing the transgender character, Maura Pfefferman, had been an honor but that the current show's atmosphere is not the same as when he started 4 years ago.
He added: "I've already made clear my deep regret if any action of mine was ever misinterpreted by anyone as being aggressive, but the idea that I would deliberately harass anyone is simply and utterly untrue. Given the politicized atmosphere that seems to have afflicted our set, I don't see how I can return to Transparent."
The actor faced two allegations of sexual harassment while he was recently accused by a transgender co-star of making lewd and sexually suggestive remarks while allegedly pressing up against her.
Tambor denied the allegations as well as others from a former assistant on the show that sparked Amazon into launching an internal investigation.
Insiders claimed that he was going to be written out of the show before he made the announcement today.
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