MP Mike Hancock has stepped down from the ruling cabinet of Portsmouth City Council.
He was suspended from the Liberal Democrat party last month after the leak of a report into allegations of sexual impropriety. He has denied the claims.
Mr Hancock resigned the parliamentary party whip last year, but was still sitting as a Lib Dem councillor until the local group ruled that his suspension meant it must strip him of the party banner.
The announcement of his resignation came hours before a meeting at which local Lib Dems were expected to decide whether Mr Hancock could retain his responsibility for regeneration and economic development while sitting as an independent councillor.