Los Angeles, Paris and Hamburg remain in the race to host the 2024 Olympics.
Rome withdrew its bid for the 2024 Summer Olympics after mayor Virginia Raggi rejected the idea of making a push to host the games.
Reuters was the first to report Rome's decision not to bid for the games.
The decision comes as Raggi has repeatedly campaigned against hosting the Summer Games and voiced her concerns about the debt that could come along with the Olympics. Raggi has until Oct. 7 to make a decision to submit a second bid.
She says that winning the bid for the games is not a priority, as there are more important issues the city needs to deal with and called it "irresponsible" if the city was to pursue the bid any further.
"In light of the data we have, these Olympics are not sustainable. They will bring only debt," Raggi said.
Budapest, Los Angeles and Paris remain in contention for the host city. Hamburg also previously bid for the 2024 Olympics before being shut down in a referendum last year and Boston also pulled its bid over financial concerns.
Italian Prime Minister Matteo Renzi has said his country will submit a bid with a different city for the 2028 Olympics if Rome rejected the candidacy for the 2024 Summer Olympics.
Unlike the other candidates, Rome did not send any representative to campaign at this summer's Olympics in Rio de Janeiro.
A decision on the host city for the 2024 Olympics will take place at an International Olympic Committee member's session in Lima, Peru on Sept. 13, 2017.
Italy hosted the 1960 Summer Olympic Games in Rome and the Winter Games in 2006 in Turin.
- Chris Chavez and Scooby Axson