"I will not file for the Democratic primary this June. I am hopeful that my exoneration will take place this summer and allow me to pursue my candidacy as an independent Democrat in the general election," said Menendez in a video posted online.
He is currently facing bribery and obstruction of justice charges.
Menendez's announcement comes amidst increasing calls for his resignation, including from several Senate Democratic colleagues, due to the pending charges against him.
Menendez, who has served in the Senate since 2006, was up for reelection this year and would have faced a competitive Democratic primary had he chosen to enter the race.
Tammy Murphy, the wife of New Jersey Democratic Governor Phil Murphy and the state's first lady, is among the candidates running. Rep. Andy Kim of New Jersey is also running and has received an endorsement from Sen.
John Fetterman of neighboring Pennsylvania, who has been one of the most vocal Senate Democrats calling for Menendez to step down.
The charges against Menendez allege that he took actions to benefit the governments of Egypt and Qatar and assisted several New Jersey businessmen in exchange for gifts such as gold bars, cash, a luxury car, and tickets to the Formula One Grand Prix race.
Menendez has vehemently denied these charges, claiming that he is innocent and is being unfairly targeted by prosecutors.
Menendez temporarily stepped down as chairman of the Senate Foreign Relations Committee when he was first charged but has since resisted calls to resign from his US Senate seat.
This is not the first legal challenge Menendez has faced. In 2015, he was charged by federal prosecutors with conspiracy, bribery, and honest services fraud for allegedly abusing his office's power.
Prosecutors claimed that he accepted more than $600,000 in political contributions, a luxurious hotel suite at the Park Hyatt in Paris, and free rides on a private jet from a wealthy ophthalmologist, Dr. Salomon Melgen, in exchange for political favors.