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Angela Merkel's release was "too little, too late" and she became a "handicap", said a professor of European studies.
Stephen Auer of the University of Hong Kong said, "It could work for Merkel, but I personally think it's probably too little, too late.
"Merkel has been deeply hated by a significant proportion of the German electorate.
"So, until recently, she was celebrated as the leader of the West, as the most powerful leader that Germany has had for a long time.
"But opposition to its migration policies in Germany, opposition to its eurozone rescue policies outside of Germany have contributed to division in Europe and division in Germany.
"So, for these reasons, she has actually become a handicap."
He added, "The problem is that anyone who dared to criticize Merkel was considered a far right populist, so even any sign of opposition within his party seemed impossible.
"So for this reason, I think it's a wise decision because it renews the party from within, but I doubt whether it can last until 2021."
Angela Merkel said that she "will not run for the head of the CDU party" at the party's next conference in December.
The German leader also confirmed that she would also leave the post of German Chancellor after 2021.
Merkel also ruled out the candidacy for a leadership position in the European Union after the elections to the European Parliament next year.
After the announcement, Merkel described the figures published in Hesse as "disappointing" and "bitter", adding that she would assume "full responsibility" for disastrous results.
Merkel also acknowledged that the German coalition government had lost its credibility and needed to "turn a new page".
She said: "The inhabitants of the country, and earlier in Hesse, see us, as I personally, as those who already bear the responsibility.
"The CDU has not been able to convince citizens enough, I do not blame voters, no, the opposite is true, I thank those who still trust us.
"I have a firm feeling that today, the time has come to open a new chapter."
"First of all, at the next congress of the CDU party in Hamburg in December, I will not run as a candidate for the presidency of the CDU anymore."
"Second, this fourth term is my last as German Chancellor. In the federal elections of 2021, I will not run for the Chancellor, nor as a candidate for the Bundestag, and I will not look for any other political office. "
Angela Merkel, 64, has been president of the CDU since 2000 and if she renounces this role, a race will be organized within the party to succeed him to the Chancellor.
Ms Merkel has been at the head of Germany for 13 years after becoming German Chancellor in 2005.
