The 61-year-old has been in charge of the Die Mannschaft since the conclusion of the 2006 FIFA World Cup on home soil.
Low’s contract would have ended after the 2022 FIFA World Cup in Qatar but he has decided to step down a year early.
Low led Germany to World Cup glory in 2014 in Brazil but suffered a humiliating group stage exit four years later in Russia.
"I take this step very consciously, full of pride and enormous gratitude, but at the same time continue to be very motivated when it comes to the upcoming European Championship tournament," Low said.
"Proud because it is something very special and an honour for me to be involved in my country and because I have been able to work with the best footballers in the country for almost 17 years and support them in their development.
"I have great triumphs with them and painful defeats, but above all many wonderful and magical moments - not just winning the 2014 World Cup in Brazil.
"I am and will remain grateful to the DFB, which has always provided me and the team with an ideal working environment."
Germany are in the same group with holders Portugal, world champions France and Hungary for EURO 2020.
"I still feel the unconditional will as well as great energy and ambition for the upcoming European Championship," Low added.
"I will do my best to make our fans happy and successful at this tournament. I also know that this applies to the entire team."
