Lord Sewel says he will stay away from Parliament until investigations into allegations he took drugs while cavorting with prostitutes are completed.
The former minister has written to the Clerk of the Parliaments David Beamish requesting a leave of absence from the House of Lords but left the door open to returning in the future.
Scotland Yard and a parliamentary sleaze watchdog are looking into lurid claims about the former minister's behaviour after The Sun on Sunday published video allegedly showing him snorting cocaine while romping naked with two women.
During his leave of absence, Lord Sewel will not be able to claim any allowances and must give three months' notice if he wants to attend the House.
He wrote: "I wish to take leave of absence from the House as soon as it can be arranged.
"I also wish to make clear that in doing so I have no intention of returning to the House in any way until the current investigations have been completed, when in the light of their outcome I will review my long term position.
"I believe this is compatible with due process."
Lord Sewel is under intense pressure to quit the House of Lords over the allegations after David Cameron questioned his future as a peer.
The former academic quit his £84,500-a-year role as deputy speaker of the Lords, which included overseeing conduct issues in the Upper House, and has since been suspended from the Labour Party.
But the Prime Minister indicated Lord Sewel should be kicked out of the Lords over the "very serious" allegations while senior peers said the married father should quit immediately.
Speaking to reporters in Jakarta, Mr Cameron said: "These are very serious allegations. I think it's right he has stood down from his committee posts and I'm sure further questions will be asked about whether it is appropriate to have someone legislating and acting in the House of Lords if they have genuinely behaved in this way.
"It's still going to take some time I suspect to get to the full truth."
The newspaper's footage shows the peer snorting white powder - alleged to be cocaine - from a prostitute's breasts using a £5 note.
He is also pictured wearing an orange bra and leather jacket as he reclines smoking a cigarette.
The 69-year-old apparently paid one of the women for the night with a cheque for £200, dated July 22.
In a conversation reportedly recorded in Lord Sewel's flat in Dolphin Square, Pimlico, a couple of miles from Parliament, the peer branded Mr Cameron "the most facile, superficial prime minister there's ever been" and labels Mayor of London Boris Johnson "a joke".
Lords commissioner for standards Paul Kernaghan, a former police chief constable, is now carrying out an initial assessment of the allegations following a formal complaint made by the Liberal Democrats about the peer.
He is expected to decide within 48 hours whether to launch a full investigation that could lead to the peer being expelled from Parliament.
Police sources indicated they would assess the evidence after the referral from Lord Speaker Baroness D'Souza, but pointed out that drug-taking allegations were notoriously difficult to prove when there was only video evidence, rather than substances that could be tested.
Former Commons Speaker Baroness Boothroyd said the peer had "brought the House into some disrepute" and should "take a quiet way out of the back door of the House of Lords".
She told BBC Radio 4's World at One: "It doesn't leave us with a very good smell under the nose of the public, quite frankly.
"You only need one bad apple in the barrel and he's been the bad apple in this barrel," she added.
Lord Brabazon of Tara, the peer's predecessor as chairman of the Privileges and Conduct committee, said he was "pretty horrified" by the allegations and called for him to quit the Lords.
He told the programme: "If I was in his shoes I would retire from the House of Lord as of now. I think he should do exactly the same straight away."
Conservative peer Lord Cormack told World at One: "I know and like Lord Sewel and I was just amazed and very sad."
He added: "There's not a proper scheme for peers to take early retirement if they wish to do so and, if there is substance to these stories, then perhaps that would be the best and kindest way for all concerned."
Shadow business secretary Chuka Umunna said the peer should "fall on his sword" if the allegations are proven.
He told the Press Association: "It's very important to be clear that these are allegations, but if they are founded then of course it would be preferable for him to fall on his sword, if you like, before requiring others to intervene to get him to do the right thing."
Lib Dem president Baroness Sal Brinton said the peer should "resign immediately".
She added: "Lord Sewel's comments about women, and about Asian women in particular, are sexist and racist, and have no place in society.
"His comments and conduct expose a man with little regard for women and a total disregard for the status and responsibility of his role."