Liz – who has played her Weatherfield character for 34 years – took the decision to quit the ITV soap for health reasons as she suffers from chronic lung disease, emphysema.
The News of The World quotes the 68-year-old actress as saying her time with the show has been the best of her life.
Corrie's Executive Producer Kieran Roberts told the newspaper: "After 34 years as Vera, Liz has taken a decision to relax and enjoy her retirement.
"We're currently devising storylines for her character's departure from Weatherfield but we would prefer not to reveal details at this moment. We're indebted to her for all she has achieved during her years as Vera Duckworth.
"She is a star and is loved by ITV. We will always miss this wonderful lady and first-rate actress and we are delighted that she's agreed to return to the soap in the future."
Despite her decision to quit, her on-screen husband, Bill Tarmey (Jack Duckworth), is sticking with the soap.
A Street source told the tabloid: "Liz has helped turn Jack and Vera into the best-loved comedy double act in soap since Stan and Hilda Ogden. She has made Vera Duckworth a legend of the small screen.
"Bill's been floored by Liz's decision. He's always believed that they were a package and would go together. He's hardly a spring chicken himself but has decided to carry on, though he realises that losing Vera will be like losing a limb for Jack.
"If you could bottle the magic that Liz has brought to the Street it would be a rare commodity."
They added: "She can't get her breath a lot of the time and can't walk very far. The crew try to limit the time she has to spend on her feet."
Liz is due to remain filming at Manchester's Granada Studios until late October, early November, while her character will bow out of the show before Christmas.
This is the latest key cast blow for Corrie bosses: Sean Gallagher (Paul Connor) quit earlier this year after only five months, while Kate Ford and Bill Ward both bid farewell to the Cobbles at the culmination of Tracy Barlow's murderous revenge against Charlie Stubbs.
Bruce Jones also quit in May, following a suspension totalling 10 weeks over allegations by a Sunday newspaper that he made inappropriate comments in a public place.
Meanwhile Wendi Peters (Cilla Battersby-Brown), Tina O'Brien (Sarah Platt), Samantha Seager (Jodie Morton), Rupert Hill (Jamie Baldwin) and Jenny Platt (Violet Wilson) will all leave within the next seven months.
Bradley Walsh, however, will return to the Cobbles as Danny Baldwin "at the back end of this year".