Blatter, 79, had just won re-election to his position last week.
The announcement came after U.S. authorities arrested nine FIFA officials and five corporate executives on corruption charges on May 27.
The U.S. also revealed that four other people and two corporations had already pleaded guilty to related charges.
At a news conference in Switzerland, Blatter said that he will create an “extraordinary congress” to pick the next leader of the soccer organization. The election will likely be late this year or early next year.
3. Here are the likely contenders for the next president of FIFA:
