Giggs has been on leave since November 2020 as he awaits a trial for domestic violence allegations in Manchester on August 8.
In Giggs' absence, Rob Page has helped Wales qualify for their first World Cup since 1958.
And Giggs wants to make sure there are no distractions for his national team ahead of this year's tournament.
A statement accompanying his decision read: "After much consideration, I am standing down from my position as manager of the Wales men's national team with immediate effect.
"It has been an honour and a privilege to manage my country, but it is only right that the Wales FA, the coaching staff and the players prepare for the tournament with certainty, clarification and without speculation around the position of their head coach.
"As has been well publicised, I have pleaded not guilty to the criminal accusations being heard at Manchester Crown Court. Whilst I am confident in our judicial process, I had hoped that the case would have been heard earlier to enable me to resume my managerial responsibilities.
"Through nobody's fault the case has been delayed. I do not want the country's preparations for the World Cup to be affected, destabilised or jeopardised in any way by the continued interest around this case."