Farage had pledged to leave the party if he failed to secure the seat of South Thanet. But the party has announced that its national executive committee has unanimously refused to accept his attempt to step down.
As promised Nigel Farage tendered his official resignation as leader of UKIP to the NEC. This offer was unanimously rejected by the NEC members who produced overwhelmingly evidence that the UKIP membership did not want Nigel to go.
The NEC also concluded that UKIP's general election campaign had been a great success. We have fought a positive campaign with a very good manifesto and despite relentless, negative attacks and an astonishing last minute swing to the Conservatives over fear of the SNP, that in these circumstances, 4 million votes was an extraordinary achievement.
On that basis Mr Farage withdrew his resignation and will remain leader of UKIP. In addition the NEC recognised that the referendum campaign has already begun this week and we need our best team to fight that campaign led by Nigel. He has therefore been persuaded by the NEC to withdraw his resignation and remains leader of UKIP.
Additional reporting by AP
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