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The actress will leave the ITV soap in a big storyline over the summer, after six years of playing the troubled former drug addict.
Paula is currently pregnant with her second child, and her character will bow out as she gets ready for her baby’s arrival.
She said in a statement: "This has not been an easy decision for me to make. I have enjoyed every moment of my time on ‘Coronation Street’ and learnt so much in the process.
"I have an amazing on-screen family who have become friends for life, so this decision was not taken lightly. But sometimes you just have to follow your heart and I am excited about what the future has to offer both personally and professionally."
Producer Stuart Blackburn said: "Paula is one of the most talented and dedicated actors I know and in Kylie she has created an unforgettable ‘Corrie’ character.
"I for one will miss both the character and the actor and on behalf of all at ‘Coronation Street’ wish Paula all the love and luck in the world and I'm certain that Paula's future will be full of continued success."
While details of Kylie’s exit storyline are currently unknown, it is thought it could see her brought to justice for killing violent ex-boyfriend Callum Logan (Sean Ward) during last year’s live episode.
His body is currently residing in a sewer underneath the Platt house, with Kylie’s husband David and his sister Sarah Louise also being in on the cover up.
Paula previously took a break from her role when Kylie left the cobbles in December 2014, as the actress took maternity leave, before making a return to screens the following June.