Craig Ferguson: I Quit!

Craig Ferguson is out leaving the Late Late Show.

CBS announced that Stephen Colbert will host Late Show this year. David Letterman is retiring and the executives felt that Colbert was the most suitable choice.

Well news came overnight that the Late Late Show host Craig Ferguson is calling it quits.

The Associated Press report that the Scottish comedian and entertainer hosted since the Late Late 2005.

Ferguson told his studio audience during Monday's taping that he will step down at the end of the year.

Ferguson's show airs after Letterman's, at 12:35 a.m. on weekdays.

The move was no surprise after CBS announced that Stephen Colbert will replace Letterman next year. There was a time that Ferguson, whose show won a Peabody Award in 2009, was considered a strong contender for that job.

But "The Late Late Show" has faded in the ratings, particularly with the arrival of Seth Meyers in February as competition in the same time slot.

"CBS and I are not getting divorced, we are consciously uncoupling," Ferguson said. "But we will still spend holidays together and share custody of the fake horse and robot skeleton, both of whom we love very much."

He told the audience it was his decision to leave, adding, "CBS has been fine with me."

CBS Entertainment Chairwoman Nina Tassler said Ferguson "infused the broadcast with tremendous energy, unique comedy, insightful interviews and some of the most heartfelt monologues seen on television."

He already has a new job lined up, as host of "Celebrity Name Game," a syndicated game show set to debut later this year.

But he joked about his plans with the audience.

David Letterman and Craig Ferguson are bouncing from CBS late nights.

After his stint ends, "I'll go and do something else. Probably, I'm thinking, carpentry. But I haven't made my mind up yet. ... I feel like doing this show for 10 years, that's enough," he said.

Guest LL Cool J told Ferguson that "I hate to see you go."

It's been an unusually busy period of personnel changes in the late-night television arena. Jimmy Fallon took over the "Tonight" show on NBC from Jay Leno in February and was an instant sensation, ascending to the top of the ratings against Letterman and ABC's Jimmy Kimmel. Letterman announced that he would be leaving CBS after more than three decades in late-night TV.

Chelsea Handler also has said she will be leaving her late-night show on E!

CBS said it plans to continue "The Late Late Show" and will be searching for another host. There's another opening at Comedy Central, which is looking to replace "The Colbert Report" when it ends at the end of the year.