The decision by Republican Rep Devin Nunes of California comes amid partisan turmoil on the committee.
Democrats have alleged that Nunes, who was on President Donald Trump's transition team, is too close to the White House and cannot lead an impartial inquiry, and the House ethics committee is investigating whether he improperly disclosed classified information.
"Several left-wing activist groups have filed accusations against me with the Office of Congressional Ethics," Nunes said in a statement.
Nunes' move could be seen as a win for Democrats whose cries for an independent panel to investigate Russia's possible ties with the Trump campaign have grown.
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They have pointed in particular to two Nunes trips to the White House one announced, one not as evidence that his loyalty to Trump outweighs his commitment to leading a bipartisan investigation.
By all accounts, the intelligence committee's growing partisanship has become a distraction from its underlying investigations.
"We have a fresh opportunity to move forward in the unified and nonpartisan way that an investigation of this seriousness demands," he said.
As the majority party in the House, Republican will keep the committee chairmanship. GOP Reps. Mike Conaway of Texas, with help from Rep. Trey Gowdy of South Carolina and Rep. Tom Rooney of Florida, will temporarily take charge of the investigation, said Speaker Paul Ryan.
More than a week after Nunes reviewed classified materials shared by a secret source on White House grounds, Schiff saw the same material, but refused to publicly discuss what he learned. He said Thursday he understood the material was now to be shared with other intelligence committee members.
Two watchdog groups, Democracy 21 and Citizens for Responsibility and Ethics in Washington, had asked the House ethics committee to investigate whether Nunes disclosed classified information he learned from intelligence reports.
The intelligence committees in both the House and Senate, as well as the FBI, have been investigating Russia's interference in the 2016 election and possible ties with the Trump campaign.
Last month Trump accused, without providing evidence, former President Barack Obama of illegally wiretapping him, and Trump asked the congressional committees to look into this as part of the investigations.
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