By the time he retires on 11 July he'll have been in the role for 16 years.
He'll move to Bury St Edmunds in Suffolk.
Speaking about his decision he said: "Our sixteen years in Leicester have been the most demanding and fulfilling years of my life.
"It has been an immense privilege to have been Bishop of this exceptional Diocese and to have had the opportunity to be part of so many communities, organisations and projects that serve the wider community.
"There is still much to be done before I leave, but we shall owe a debt beyond words to the people of Leicester and Leicestershire for their friendship, support and love for our family and their contribution to the enrichment of our lives."
Bishop Tim has held a number of senior roles in recent years including leading the bishops in the House of Lords since 2009.
He has also served as a member of the Archbishops' Council.
Premier's Des Busteed has been speaking to Bishop Tim: