Yunus won the 2006 Nobel Peace Prize for helping poor women escape poverty by offering micro-credit through his Grameen Bank, earning the nickname "banker to the poor".

"I have decided to back out from my efforts for forming a political party, bowing to the practical aspects of the situation," Yunus has said in a statement.

issued the statement after he met Fakhruddin Ahmed, head of the army-backed interim government, at his official residence on Wednesday night.

Yunus said he felt the interim government, which had restored relative calm in the country after deadly political violence last year, would be able to steer Bangladesh to further progress with the people's support.