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Ms Bishop said she had not yet decided whether to stand at the next general election, due in 2019.
She had sought the prime minister’s job after Malcolm Turnbull stood aside, but was eliminated in the first round.
The leadership fight also ended her 11-year tenure as deputy leader of the Liberal Party.
The 62-year-old from Western Australia has been a federal politician for two decades.
“I will remain on the backbench as a strong voice for Western Australia,” she said.
Australia’s Foreign Minister Julie Bishop has announced her resignation from the cabinet.
Her move came as new Prime Minister Scott Morrison prepares to announce his new cabinet after winning a bruising leadership contest on Friday.
Ms Bishop said she had not yet decided whether to stand at the next general election, due in 2019.
She had sought the prime minister’s job after Malcolm Turnbull stood aside, but was eliminated in the first round.
The leadership fight also ended her 11-year tenure as deputy leader of the Liberal Party.
The 62-year-old from Western Australia has been a federal politician for two decades.
“I will remain on the backbench as a strong voice for Western Australia,” she said.
