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SNP Westminster leader Stephen Flynn will no longer seek a dual mandate to stand as an MSP in the Scottish parliament while remaining an MP.
Mr Flynn, who was re-elected as the MP for Aberdeen South in July, sparked criticism after announcing plans earlier this month to win his party's nomination for the Aberdeen South and North Kincardine seat in the Holyrood 2026 election.
If successful, the 36-year-old vowed to remain an MP until the next general election but would not accept two salaries.
However, his plan drew ire from members of his own party given Mr Flynn was among SNP colleagues who criticised former Scottish Tory leader Douglas Ross for previously doing the same thing.
Public finance minister Ivan McKee said "double-jobbing - working as an MP and an MSP - isn't sustainable", while MSP Emma Roddick urged him to rethink his decision.
The seat is also currently held by SNP MSP Audrey Nicoll.
On Thursday, Mr Flynn admitted he had "got this one wrong" and would no longer be pursuing both jobs.
He said: "Hands up, I've got this one wrong and won't be pursuing a dual mandate.
"My aim to save the public purse from unnecessary strain by potentially overlapping the role of an MP and an MSP for a short period until the next general election was genuine in its intent - but doing it for the right reasons doesn't change the fact that I got it wrong.
"My motivation and central belief remains that Holyrood, as the heart of Scottish democracy, is the democratic platform that will drive the route to an independent Scotland.
"All of us in the independence movement share that common cause and want to be part of that story.
"Alongside all SNP members, I now look forward to assessing the new candidate selection rules that my party will put in place."
Mr Flynn has often been touted as a potential future party leader.
He did not run in this year's SNP leadership race to replace Humza Yousaf and instead threw his backing behind eventual winner Mr Swinney.
As Mr Flynn is not an MSP, it would have been difficult to become first minister at Holyrood.
However, the potential move to the Scottish parliament would put him on the right track towards Scotland's top job.
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Amid the "double-jobbing" row, Mr Swinney described Mr Flynn as one of the SNP's "great stars".
The first minister added: "He is an immense talent and he's a superbly talented individual."
The deadline for applications to be considered for selection as an SNP candidate for the next Scottish parliament election closed last week, but the formal selection process will not begin until next year.
Ahead of the 2021 Scottish election, the SNP changed internal rules to require MPs to resign their seat at Westminster to fight for selection to Holyrood.
This led to then MP Joanna Cherry to pull out of the selection contest for the Edinburgh Central seat, and at the time she said the rule change "hobbled" her in her Holyrood selection bid.
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The party's ruling body - the National Executive Committee (NEC) - could decide to scrap the rule for contests ahead of 2026.
However, opposition parties have called for dual mandates to be banned, with the Scottish Tories re-tabling an amendment to the Scottish Elections (Representation and Reform) Bill to outlaw it in time for the 2026 election.
A vote is expected to be held before Christmas, with both Scottish Labour and the Scottish Greens expected to support the move.
MSP Rachael Hamilton, deputy leader of the Scottish Tories, branded Mr Flynn's U-turn "humiliating".
She added: "His plans were typical of arrogant SNP politicians who think there should be one rule for them and another for everyone else.
"However, even people in his own party saw right through his rank hypocrisy and made their feelings known.
"The public deserve better than nationalists prioritising their own career options, rather than addressing what Scots are really concerned about."
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