Alex Salmond said he will not be "withdrawing entirely from political life" and that he will be a local candidate in the next election.
He added that he "loves the fact that I've been the longest serving First Minister of Scotland" and that his proudest moment was the "restoration of free education."
"It has been the privilege of my life to serve as First Minister," Alex Salmond said as he announced he would be stepping down following the referendum defeat.
"But as I said often enough during this referendum campaign, this is a process which is not about me or the SNP or any political party, it's much, much more important than that," the First Minister added.
ITV Border's Political Editor Peter MacMahon has been tweeting live from the press conference in which Alex Salmond announced he would be stepping down from his position at Scottish First Minister.
Alex Salmond said he would not have resigned as First Minister had Scotland voted for independence.
He added that the "last seven years as the First Minister has been the privilege of my life" but said in his opinion "the country would benefit having new leadership".
Alex Salmond said he was congratulated by David Cameron on a "hard fought campaign" but the Prime Minister refused to back Gordon Brown's timetable for a vote on a Scotland Bill by 27 March next year.
Alex Salmond announced he will stand down as Scotland's First Minister and SNP leader after voters rejected independence in the referendum.Read the full story ›
Alex Salmond ended his resignation statement in Edinburgh by saying: "As leader my team is nearly over...but the dream will never die".
Alex Salmond said "it is a matter for the membership of the SNP" who will be the next leader of the party and therefore likely to be the next First Minister.
Alex Salmond is set to resign from the Scottish National Party and as First Minister, he has announced.
Many people were watching the Scottish independence result today in Cumbria just as keenly because of the county's proximity to the Scottish border.
Carlisle's Conservative MP John Stevenson has welcomed the 'no' vote and called for the county to get more of a voice, and its share of devolved power.