Wray, who was nominated by Trump in 2017, told employees during a bureau-wide town hall that his last day will be in January when President Joe Biden leaves office.
"This is the best way to avoid dragging the Bureau deeper into the fray, while reinforcing the values and principles that are so important to how we do our work," Wray said, according to his prepared remarks.
The director added, "It should go without saying, but I'll say it anyway — this is not easy for me. I love this place, I love our mission, and I love our people — but my focus is, and always has been, on us and doing what's right for the FBI."
The announcement comes after Trump revealed last month that he had nominated former intelligence aide Kash Patel, a Trump loyalist, to fill the director role. Patel welcomed the news of Wray's planned exit.
"I look forward to a smooth transition," Patel said in a statement. "I will be ready to serve the American people on day one."
Trump initially praised Wray after firing former Director James Comey amid the FBI's investigation into whether Trump's 2016 campaign colluded with Russia. Trump said at the time that Wray was "a man of impeccable credentials."
Wray has, however, drawn ire from Trump and his Republican allies in recent years over accusations that the bureau has been, at times, weaponized against Republicans.
Trump called Wray's planned departure a "great day for America."
"I just don't know what happened to him," Trump said on his social media platform, Truth Social. "We will now restore the Rule of Law for all Americans."
Under Wray, the FBI has also faced accusations from Republicans of being biased against Catholics and improperly pressuring social media companies to practice censorship, two matters the FBI has disputed.
Sen. Chuck Grassley (R-IA), who is set to lead the Senate Judiciary Committee next Congress, wrote a scathing letter to Wray this week, saying he had "no confidence" in the director and that he should step down. Grassley, who has served in the Senate for more than four decades, said Wray's resignation paved the way for a "new era" at the bureau.
"Wray's departure is an opportunity for a new era of transparency and accountability at the FBI," Grassley said. "Future FBI Directors ought to learn a lesson from Wray's mistakes. Stonewalling Congress, breaking promises, applying double standards and turning your back on whistleblowers is no longer going to cut it."
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