Mr. Rutte is one of Europe’s longest-serving leaders. He has been in charge for almost 13 years.
He is now in charge of a temporary government until November, when new elections can be held.
He told parliament, though, that he would not run for a fifth term and would leave politics after the polls.
Later, Dutch MPs will decide on a “no-confidence” motion that the opposition put forward to get rid of him.
For the past year and a half, Mr. Rutte and his conservative VVD party have led a coalition government in the Netherlands. However, the four parties in the coalition have had different views on immigration for a long time.
After a fight about overcrowded migrant centers last year, the VVD was trying to stop as many people as possible from coming to the Netherlands to seek asylum. Junior coalition partners did not agree with his ideas.
Dutch government falls over refugee dispute
“Once the new cabinet takes over after the elections, I will leave politics,” Mr. Rutte said, adding that he had already told party and parliamentary leaders.
“This is a personal choice that has nothing to do with what has happened in the last few weeks,” he said.
Two left-wing opposition parties and the far-right party of anti-Islam leader Geert Wilders have filed the motion of no-confidence.
But for it to pass, it needs the help of at least one of the groups in Mr. Rutte’s now-defunct coalition.
Before what happened last Friday, Mr. Rutte was seen as one of the most clever politicians in Europe. He even had the nickname “Teflon Mark” because he was so hard to hurt.
Since 2010, when he became prime minister, he has become known for his ability to avoid political problems and keep his good name.
Like many of his peers, he is known for living a simple life. He rides his bike to work and even to the palace.
In 2018, he dropped his coffee on the way to parliament and was caught on video cleaning up the mess himself with a bucket and mop. This may be the best example of how humble he is.
After speaking to parliament, Mr. Rutte told the Dutch media that he had “mixed feelings” about leaving politics.
“This isn’t completely emotionless,” he said. “But it also feels good to pass on the baton.”