Summers is the chief White House advisor to the President on the development and implementation of economic policy. He also leads the President's daily economic briefing. He had served the Treasury Secretary in the Clinton Administration.
"I will always be grateful that at a time of great peril for our country, a man of Larry's brilliance, experience and judgement was willing to answer the call and lead our economic team," Obama said in a statement.
"Over the past two years, he has helped guide us from the depths of the worst recession since the 1930s to renewed growth. And while we have much work ahead to repair the damage done by the recession, we are on a better path thanks in no small measure to Larry's wise counsel," said the US President.
Summers is the third high-ranking economic official to leave the Obama administration following the departures of Peter Orszag, former head of the Office of Management and Budget, and Christina Romer, former head of the Council of Economic Advisers.
"I will miss working with the President and his team on the daily challenges of economic policy making," Summers said.
"I'm looking forward to returning to Harvard to teach and write about the economic fundamentals of job creation and stable finance as well as the integration of rising and developing countries into the global system," he said.
Besides playing a key role in reviving the US economy, the White House said he played a leading role in managing our international economic relationships including China, developing the President's health care plan, opening the broadband spectrum, and in international climate negotiations.
