Thilo Sarrazin has resigned from his job on the board of Germany’s Bundesbank and will leave at the end of the month.
In recent times, Sarrazin has become a best-selling social commentator with his views on race, religion and immigration backed by a large swathe of the German public.
But his divisive comments prompted censure from Chancellor Angela Merkel, and last week the Bundesbank voted unanimously for his dismissal.
The 65-year-old has long been outspoken but his recent claims that Jews shared a particular gene and Muslim immigrants are undermining German society proved to be a tipping point.
The centre-left Social Democratic Party has also begun proceedings to expel Sarrazin.