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The Scottish actor, who has played the title role in the iconic sci-fi series Dr Who since 2013, revealed on BBC Radio 2 on Monday night (UK time) that he will finish in the role at the end of the current series, his third.
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"I feel it's time for me to move on to different challenges."
Capaldi made his first appearance in the role in the 50th anniversary special Day of the Doctor. He then took over the role when the character regenerated from Matt Smith's interpretation to his in the 2013 Christmas Special.
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Capaldi's performance as The Doctor has been described as "wise and thoughtful" by The Guardian, with Radio Times saying "Peter Capaldi's one-man show is an instant classic".
The tenth season of the rebooted series, which begins airing in April, will mark Capaldi's final . The yet-to-be-shot Christmas Special will be his final episode and will feature the regeneration of the character as the new doctor. A replacement is yet to be named.
Alex Kingston as River Song and Peter Capaldi as the Doctor in the 2015 Christmas Special. Photo: Simon Ridgway
"It's sad (to pass it on to someone else), but what a privilege to have done this," he said. "But like everything, you have to be aware when it's time to move on."
Capaldi revealed that his contract was coming to an end and he decided not to renew despite producers urging him to stay on. "I didn't know how much longer I could do it and give it my best," he said.