“After much thought and prayer, I have made the very difficult decision to step down from Congress effective January 5th, 2015,” he said in a statement. “The decision is made with a heavy heart, as I have enjoyed a very special relationship and closeness with my constituents, whom I care about deeply.”

He said that he cannot “continue to be 100% effective in the next Congress,” and added it is “time for me to start the next chapter of my life.”

Grimm talked to House Speaker John Boehner (R-Ohio) on Monday.

The move sets up a battle for Grimm’s Staten Island- and Brooklyn-based seat in early 2015.

The New York Daily News first reported Boehner’s conversation with Grimm. Boehner aides would not comment on their discussion, calling it a private talk between members.

Grimm, a 44-year-old former FBI agent, admitted a week ago to failing to report more than $900,000 in revenue from a Manhattan restaurant, Healthalicious, that he owned from 2007 to 2010.

He also acknowledged lying in a civil case brought by former Healthalicious employees.

Boehner has not publicly called on Grimm to resign, but the Ohio Republican has said he would not tolerate wrongdoing by his rank-and-file colleagues.

While Boehner could not have prevented Grimm from being sworn in or taking his seat in the 114th Congress, he could urge the Ethics Committee to quickly move to expel Grimm.

The resignation removes one major headache for House Republicans as they start their new chapter of control in Washington. A convicted felon would’ve provided an unwelcome headache for the GOP.

( Also on POLITICO: Prosecutor in Garner case seen as prospect for Grimm seat)