Finance Minister Lindsay Tanner has announced to Parliament he will not be contesting the seat of Melbourne at the forthcoming election.

Mr Tanner, one of the most senior figures in the Labor government, said he would be leaving political life after the election, with the exception of working for the cause of African-Australians.

Minister for Finance and Deregulation Lindsay Tanner in Parliament. Credit:Stefan Postles

Mr Tanner stressed that his departure was not related to Julia Gillard's challenge for the Labor leadership, and that he had an appointment booked with former prime minister Kevin Rudd for 9.30am today this morning to advise him of the decision to leave.

He also stressed that his departure, in order to spend more time with his four children, was unrelated to whether or not he would win the seat of Melbourne, where he is expected to come under strong challenge for the Greens.