In a statement to his Linkedin page on Saturday evening, the transport, veterans and western Sydney minister cited factional reasons for not contesting the March election.
"With the abolition of my Baulkham Hills electorate and advice that I cannot be accommodated in the new seat of Castle Hill on factional grounds, I have today advised my community that I will not be recontesting the 2023 state election," Mr Elliott wrote.
Premier Dominic Perrottet spoke to Mr Elliott on Saturday night.
"Ultimately I think David should stay, he's been a very strong minister of the government," Mr Perrottet said.
But he also said it would be a "healthy thing" for Macquarie Street to have new blood come through.
"If you look at the parliaments of 10 or 20 years ago, people stayed there until they were 60, 70, 80 years of age," the premier said.
"I don't think that is in the best interests of a strong, robust democracy."
Mr Elliott nominated for preselection for Castle Hill after his seat of Baulkham Hills was abolished in a redistribution.
Castle Hill, a safe Liberal seat in Sydney's northwest, is held by Ray Williams.
Mr Williams is contesting Kellyville, a newly created seat that takes in much of Mr Elliott's Baulkham Hills seat.
Mr Elliot joins a long list of retiring NSW coalition MPs, including Infrastructure Minister Rob Stokes, Customer Service Minister Victor Dominello, and Corrections Minister Geoff Lee.
The 52-year-old, who has previously served as minister of the police, emergency services, counterterrorism and corrections portfolios, has courted controversy since entering NSW parliament in 2011.
He told a P-plate driver he "worked for the cops" during an alleged road rage incident in 2019, defended the strip-searching of minors, was photographed firing two prohibited guns, and publicly scorned for taking an overseas holiday during the Black Summer bushfires while emergency services minister.
Mr Elliott has more recently been locked in a protracted dispute with NSW's rail, tram and bus union over a new enterprise agreement.
Reflecting on his 12 years in NSW parliament, Mr Elliott alluded to the burden public life has placed on his wife Nicole and two children.
"Whilst the boys and I have always had a good giggle at the emotion and thought invested into the 'constructive feedback' I've sometimes attracted, I know Nicole often took it personally," he said.
"Her loyalty has been inspirational. Having spent nearly two decades serving my country in both the military and the NSW parliament, I leave public service content that I've done the best job I could."
The coalition will be vying for a historic fourth term at the March election.
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