The move by 85-year-old leader came after his son Bharat re-joined the ruling BJP last month. Bharat, who was earlier in the BJP, had quit the party to join the GPP formed by his father.
In a GPP meeting held in Gandhinagar today, Patel announced that he would like to step down from the post and continue to work only as a member of the party.
"I cannot work as much as I used to work earlier. I am not retiring, but will play an advisory role (in the party)," Patel said after quitting the post.
Keshubhai Patel's move is likely to further boost the BJP in the run up to the Lok Sabha elections. In the state elections held in 2012, the GPP had won around six per cent votes of the total share polled affecting results in some seats.
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Former Gujarat Minister of State for Home Gordhan Zadafia has now been elected as the GPP president. Zadafia had left the BJP and joined Keshubhai Patel to form the party.
Another former chief minister Suresh Mehta, who was also present at the meeting, has also decided not to take up any post, but work just as a member of the party.
Zadafia said that they plan to rope in new members and build a new team.
Keshubhai was unceremoniously removed from the post of the chief minister in 2001 by the BJP leadership and was replaced by Modi.
Patel had then launched his own party in August 2012. However, the GPP could only win two seats, out of 182, in the state assembly elections held in December 2012.