Kinberg Batra told newspaper Aftonbladet that she will not run as a candidate for 2018's general election.
"It's hard to motivate oneself to make a totally new campaign for the Riksdag," or Swedish Parliament, she told Aftonbladet. "I am proud of the trust I received, both as a party leader and as a representative from Stockholm County. But after the next election, I look forward to doing something else."
Kinberg Batra took over as head of the party following its loss of power in the 2014 election. After floundering in the polls, she was forced to step down last month after losing a majority of support within her own party.
Batra, who succeeded former prime minister Fredrik Reinfeldt, was the first female leader of the Moderate Party. The party will vote on a new leader October 1 and is expected to elect Ulf Kristersson.