Godfrey Bloom will sit as an independent MEP until next year's European election but has not quit Ukip, it has been announced.
Mr Bloom, an MEP for Yorkshire and Humber, was stripped of the party whip last week following offensive remarks he made about women at a party event and an altercation with a TV journalist.
Mr Bloom said the "New Ukip" was "not really right for me any more". His spokeswoman said it was not clear whether he would seek re-election for a third term next May.
Mr Bloom said: "I have felt for some time now that the New Ukip is not really right for me anymore perhaps than New Labour was right for the Denis 'The beast of Bolsover' Skinner. However our message is clear: self government. Our wonderful and loyal membership will win through with their dedication and hard work. It has been a pleasure to work with them for 15 years.
"May I take this opportunity to express my sincere thanks to the thousands of people who have supported me with messages of goodwill in the recent months and particularly in recent days. There have been simply too many to make a personal response, forgive me. I shall sit out my term as an independent and give my wholehearted support to Jane Collins who is almost certainly going to be the next Ukip MEP and probably a second seat yet to be decided. I shall of course retain my membership."
Mr Bloom had the whip withdrawn after calling women at a conference fringe event "sluts" and hitting a TV journalist with a copy of the brochure for the gathering in Westminster.
Ukip leader Nigel Farage said Mr Bloom's antics had distracted attention from the party's core message, but stressed they could still make serious inroads at Westminster in 2015 and potentially hold the balance of power after the election.
Mr Bloom insisted the "sluts" remark was a joke but Mr Farage said the MEP, who is no stranger to controversy, had "just gone way over the line".
Following the incident, Ukip chairman Steve Crowther said: "I have withdrawn the whip from Godfrey Bloom, pending a formal disciplinary hearing."
Party sources said the temporary suspension had effectively been made permanent and they did not expect Mr Bloom to be a candidate again in May.