AA Otago district council member Hudson Biggs said it informed Dunedin Mayor Dave Cull of its decision yesterday.
Cr Kate Wilson, who is part of the liaison group, said she was disappointed the AA had pulled out, as its members had made positive contributions to the group and had "certainly been listened to''.
Mr Cull did not return calls requesting comment.
The liaison group, which includes members from a range of organisations, was formed last year, partly out of a desire to prevent the council from repeating mistakes in its cycleway roll-out, by increasing consultation.
However, the AA, which has 38,000 Otago members, believed the increased consultation promised had not eventuated.
"The AA has become increasingly concerned that the [group's] objectives of collaboration and understanding between members of the group, in particular DCC transport, are becoming increasingly hollow,'' Mr Biggs said.
It was not about the AA being anti-cycleway.
"Our organisation actually believes that cycling has a valuable part to play and it's been increasingly embraced by a section of the community.''
Apart from the lack of consultation, AA was concerned about the cycleways selection process, what was being done to rectify problems and ensuring problems were not repeated.
By leaving the liaison group, AA enhanced its ability to comment on the issue.
Mr Biggs was reluctant to go into detail about the AA's concerns about the latest Portobello Rd and one-way system designs.
Its decision to leave the group was made before those designs were made public this week.
The AA was disappointed it did not have a greater chance to examine and discuss the designs before they were released.
A liaison group meeting planned for last month was cancelled by the council.
When it came to the problem-plagued section of Portobello Rd cycleway, the AA was concerned about the length of time it had taken to find a solution.
"We are struggling to understand [why] remedial action on Portobello Rd has taken 18 months.''
The council had also been too slow to put in place interim safety measures while a permanent solution was being worked on.
When it came to the New Zealand Transport Agency's proposed separated cycleways along the city's one-way system, it was concerned about issues involving its links with the rest of the city's roading network, which was controlled by the council.
Cr Wilson accepted organisations could find council processes frustrating and there had been issues as a result of changes in council staff.
She was thankful for the contributions the AA had made while part of the group and hoped it would stay involved in consultation outside the group.
The group's meeting last month was cancelled because it clashed with annual plan meetings.
