The 25-year-old, who has captured the hearts of millions since 2006 playing the role of gay student John Paul McQueen, will bow out of the soap in September for pastures new.
His exit will naturally coincide with the brief return of Guy Burnet as John Paul's old flame Craig Dean, who makes a comeback in a bid to rekindle their romance.
When John Paul sees Craig again for the first time since Craig left for Trinity College, Dublin, his life is thrown into complete disarray. His feelings for Craig begin to resurface and he's forced to make the biggest decision of his life - stay with his fiancé, Father Kieron Hobbs (Jake Hendriks), or reunite with his former love.
The situation soon takes a sinister and fatal twist, however, resulting in Craig moving one step closer to the sunset ending he returned for.
Speaking of his decision to quit, Sutton said: "I’ve had a really great time working on Hollyoaks but after much thought I’ve decided that it’s time to bring it to an end."
He continued: "I’d like to take this opportunity to thank Bryan Kirkwood and everyone at Hollyoaks for making my time here so memorable. I’m also really grateful to the viewers for their continued support and commitment to the character and the storyline."
Producer Bryan Kirkwood added: "In two short years, James Sutton has achieved amazing success in his role as John Paul McQueen.
"His sensitive and honest portrayal of a young man coming to terms with his sexuality and dealing with the aftermath has captivated viewers and critics, won many awards and has been at the heart of Hollyoaks' recent success. James will, I’m sure, go on to great things."
Sutton films his final scenes in July and will depart on screen in September.
Earlier this year, John Paul and Craig's affair storyline was honoured at the Stonewall awards.
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