Giorgio Napolitano announced his retirement as Italian president Thursday before the expiry of his term in 2020, Anadolu Agency reported.
Napolitano, 89, president himself confirmed his resignation which he said was because of his age.
The octogenarian has been Italy's president for more than eight years. In 2013, he was elected as president for the second time.
He was first elected to parliament in 1953. He previously served as Italy's speaker of the lower house of parliament and as interior minister.
According to the IMF, Italy is the ninth-largest economy in the world and the third-largest in the EU.
Politicians in the country have been publicly squabbling as the country's economic woes continue.
Italy's unemployment rate increased to 12.7 percent in November 2013, up from 12.5 percent in October, according to the National Institute of Statistics.
The institute's most recent data showed that the number of Italian families who lived in poverty was on the rise, while a record number of businesses filed for bankruptcy.