Simon Hughes, the President of the Liberal Democrats, and deputy leader Vincent Cable announced the resignation outside the Liberal Democrats headquarters in London, saying that he had made the decision "in the interests of the party".
Vincent Cable will become acting leader while a leadership election takes place. Home Affairs spokesman Nick Clegg and environment spokesman Chris Huhne are considered to be possible candidates.
Campbell, 66, was elected leader in January 2006 after Charles Kennedy stood down. Since then he has faced criticism over his leadership and poor poll results.
In his resignation letter, he wrote: "It has become clear that following the prime minister's decision not to hold an election, questions about leadership are getting in the way of further progress by the party. Accordingly, I now submit my resignation as leader with immediate effect."
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