The comedian's departure coincides with producer Brett Ratner's resignation following his recent controversial remarks.
Murphy said in a statement: "First and foremost I want to say that I completely understand and support each party's decision with regard to a change of producers for this year's Academy Awards ceremony.
"I was truly looking forward to being a part of the show that our production team and writers were just starting to develop, but I'm sure that the new production team and host will do an equally great job."
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AMPAS president Tom Sherak, who supported Ratner prior to his exit, commented: "I appreciate how Eddie feels about losing his creative partner, Brett Ratner, and we all wish him well."
Ratner was signed on to produce next year's Oscars but he caused controversy after he described rehearsals as being "for f*gs" during a Q&A for his latest film Tower Heist, starring Murphy.
Watch Brett Ratner make the controversial remark below (at 2:40):
He has since apologised for his remarks, while Sherak had originally said that Ratner would not be penalised for his gay slur.
Next year's Oscars is expected to air on February 26.
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Watch former Oscars host Hugh Jackman tell Digital Spy earlier this year how Eddie Murphy was "the perfect choice" to host the ceremony: