Di Montezemolo, 65, created the Italia Futura political association in 2009 with a view to gaining power in this year's general elections.
He now says he will support prime minister Mario Monti's bid for a second term in the role, rather than pushing forward with his own political ambitions.
"I will not run for a seat," he told Italian newspaper La Repubblica.
"I will leave room to the many quality people who have supported and worked for the association these years. It's only fair that they should be the main players."
There had been fears that a possible ministerial position for di Montezemolo would create several conflicts of interest with his role at Ferrari and possibly lead to him having to give up the presidency.
A role in the government looks now unlikely, and he allayed these fears by reaffirming that while he will retain an involvement in Italia Futura, he will not be its figurehead as it seeks to become a political party.
"Italia Futura is about to turn into something a lot wider and diverse, and I won't be the leader of that," he added.
"Obviously it will be the political home for myself, for tens of thousands of Italia Futura associates, and for millions of voters who will choose it.
"I will support it with determination before and after the elections, but in a position that won't lead to any suspicions of conflicts of interests."
Di Montezemolo has been Ferrari president since 1991.