Ms Jardine, the MP for Edinburgh West, said she does not possess the "burning desire" to be party leader and wants to spend a "wee bit more" time with her family.
“After considering all the suggestions and requests I have opted not to go for the leadership,” Jardine stated in a Facebook message to local party activists.
“Perhaps it’s lockdown but I realise my personal and family life has taken quite a hit in the past three years, and perhaps the people around me deserve a wee bit more of my time. I also don’t have a burning desire to be leader.
"I got into this to make a difference and I don’t have to be leader to do that.”
The party leadership has been vacant since Jo Swinson quit after losing her East Dunbartonshire seat in last December’s election.
Sir Ed Davey and Layla Moran will now be front runners for the role.