Erdington MP Siôn Simon will stand down at the next genaral election
Mr Simon, pictured below, who was asked in December to repay around £21,000 following the expenses inquiry, announced on Wednesday that he would not contest the seat he last won with a majority of 9,500 votes.
Instead he will lobby for Birmingham to adopt London's elected mayor system.
The Labour minister for creative industries is most famous for a video spoof of Tory leader David Cameron, which was posted on the internet.
In the short piece from 2006, Mr Simon poses as Cameron by wearing a baseball hat and invites viewers to sleep with his wife.
Mr Simon said this week that he hoped to be his party's candidate in the event of Birmingham overhauling its local government structure.
In a statement on his website, Mr Simon said: "After nine years in Parliament it has become clear to me that the answers to Birmingham's problems do not lie in Westminster and Whitehall. We need to take back control of our own city.
"We cannot leave our future to London. They have not looked after our past.
"We need strong, dynamic leadership with stream-lined decision-making powers.
"The current 19th century arrangements give us neither. The city council, as an institution, is not fit for purpose in the 21st century.
"I am convinced that elected mayors should, and will be, introduced for our major cities in the next Parliament, whoever is in government.
"When they are, I will put myself forward for consideration as the Labour candidate.
"As a result, I will not be seeking re-election as MP for Birmingham Erdington this year.
"I hope that Birmingham people will see this as my badge of commitment to the city."
In December, Mr Simon was found to have breached expense rules and was asked to repay the money he used to rent a London flat, which belonged to his sister.
Mr Simon claimed the money from 2003 until December 2007. A rule change in April 2006 specifically prevented MPs from renting property belonging to their family.
Mr Simon said he was unaware of the rule change, adding he accepted full responsibility and apologised unreservedly.