The Rt Rev Dr Steven Benford was ordained at St Paul’s Cathedral in September 2017.
He is a former doctor and for many years juggled preaching and practising medicine.
Dr Benford, 62, in announcing his decision in a statement last night, said it was "not an easy message to send".
"I believe that the time has come for me to step down as Bishop of Dunedin.
"I have tendered my resignation to the primates, and expect to finish in May 2024 — an exact date is to be decided.
"I had a very strong sense of call to this post, and while I sense it is the right time to finish, it is slightly disconcerting not knowing what the future holds."
Dr Benford said he did not have a post to go to and would "spend some time near our family in the first instance".
He said it had been "a privilege" to serve Dunedin.
"I have been powerfully changed by my time here as bishop, and particularly through the love and friendship of so many people."
Dr Benford most recently relocated from London, but worked as a GP in Oamaru in the 1990s.
His connection with New Zealand comes through his wife, Lorraine, who was born in Dunedin and grew up in Gore. They have four children.
