Though she acknowledged there had been a whispering campaign against her for months, Ms Ellis said she had made up her own mind, and that Prime Minister Kevin Rudd had urged her to stay in politics.

But after five terms in Federal Parliament and one in the ACT Legislative Assembly it was time to go, she said.

"I have had support from many people to stay on and contest the next election, and to continue to represent this electorate," she said.

"However I have decided after months of deliberation that the time is right to bow out on my own terms, and I have advised the Prime Minister of my decision."

Speculation has been mounting for months that both Ms Ellis, 64, and her Labor colleague Bob McMullan, the Member for neighbouring Fraser, would step down, but both had long denied they would move aside.

Ms Ellis said the decision taken last night by Labor's local administrative committee to ask the federal executive to help choose all three Labor candidates had not influenced her decision.

Mr McMullan announced on Tuesday he would retire.

Both seats will be hotly contested, and Labor sources continue to insist Federal candidates will be imposed.

EARLIER REPORT: Member for Canberra Annette Ellis will announce her retirement at 11.30am today.

Ms Ellis would not comment on whether she planned to announce her retirement when contacted by the Canberra Times this morning, but three Labor Party sources have confirmed she will go.

The 64-year-old said as recently as four days ago that she would recontest the seat of Canberra at the next election, following Bob McMullan’s decision to retire from the neighbouring seat of Fraser.

But at a meeting of the Labor Party’s administrative committee held last night, a motion was drafted asking the Federal party to help choose all three local candidates for the next election.