Truksnis will continue as a councilman at the Jūrmala seaside town.
"The last few months have been full with worry and very greatly felt emotions, affecting the state of my health," said Truksnis after listing perceived successes he has had as the mayor.
He also said he will bid to become mayor in the next municipal elections, which will be held in June.
Truksnis was ejected from his seat in October last year after Latvia's anti-graft squad, the Corruption Prevention and Combating Bureau raided the offices of the Jurmala municipality and Truksnis.
Truksnis was reportedly hospitalized after the raid but later reported to the headquarters of the anti-graft authority.
In November however he was voted back into office as a Harmony councilwoman switched sides. The Latvian Green Party (part of the Greens and Farmers Union), of which Truksnis is a member, said it could revoke his membership.
Jānis Lediņš, head of the Jūrmala branch of the party told LTV that Truksnis had asked not to dismiss him and that his resignation is related to the meeting, in which Truksnis could be sacked, of the party's council later on Friday.
(The story was updated with info on Sproģe being elected.)