"I have been to see (Players Committee chairman) Thomas Bjorn and formally informed him I do not want to be considered for the Ryder Cup captaincy in 2014," the Ulsterman said.
The Players Committee meet in Abu Dhabi later today and are expected to announce the new Ryder Cup captain.
Clarke, the 2011 British Open champion, was also a front-runner for the job until his odds lengthened last week when he hinted he wanted another shot at playing in the team he served five times between 1997-2006.
World number one Rory McIlroy re-iterated this morning his plea for McGinley to be given the job for the 2014 edition of the biennial team event at Gleneagles, Scotland.
"I have a very strong opinion about this," said the 23-year-old world No.1. "I really think Paul deserves it.
"He has been a great player and a great personality for the European Tour over the years. I also played under him at the Seve Trophy in 2009 and I thought he did a great job.
"From all the captains I've played under, I think he was the best."
McIlroy seemed to be perturbed that several members of the 2012 Ryder Cup team were not on the Players Committee that decides the new skipper.
"I would like to think our opinions are valuable to them and they make the decision based on that. I'm not even sure there is anyone sitting on the Players Committee who is even going to make the Ryder Cup team."
Olazabal led Europe to a remarkable comeback victory over the United States at the 2012 Ryder Cup in Illinois.