Lorgat who was appointed chief executive in June 2008 will step down after the ICC anual conference scheduled to be held in Kuala Lumpur next year.
Although Pawar had offered Lorgat a three-year extension to his current term, he chose only one and now feels that it's the time to move on.
'My sense is to step aside after having delivered a successful ICC Cricket World Cup and the new global ICC strategy which is now in place,' Lorgat wa quoted as saying by the press release.
He further added: 'In 2010, I felt there was much work for me to complete during 2011 which included protecting the integrity of the game and restoring the reputation and image of the ICC.
'Having dealt decisively with the spot-fixing issues, delivered a highly successful ICC Cricket World Cup and adopted a new global strategy, I feel the time is right to move on.'
The only disappointment for Lorgat is that World Test Championship which was scheduled in 2013 couldn't be organised.
A'lthough disappointed that the Test World Championship will not be played in 2013, I am confident that with the strategic restructures we have undertaken, all three formats can be sustained at international level.'