Published Friday, 27 January 2012
It is understood his resignation follows an internal party row with the UUP leader Tom Elliott over possible co-operation with the Democratic Unionist Party.
Mr McNarry is understood to have held a secret meeting with the DUP on the issue of a possible re-alignment of unionist politics.
On Friday, Mr Elliott withdrew him as the party's Deputy Chair of the Education Committee at Stormont.
In a statement, Mr McNarry said: "This evening Tom Elliott, the Ulster Unionist Leader, informed me by telephone that, because of an article in last Monday's Belfast Telegraph, he was removing me as Deputy Chair of the Assembly Education Committee but not withdrawing the party whip.
"In response, I informed him that, in that case, I was, with immediate effect, resigning from the Ulster Unionist Assembly Group."
Mr McNarry has been a senior member of the party at the Assembly for many years and was a former chief whip.
In a statement, a UUP spokesperson said: "We can confirm that David McNarry was today removed by the Party leader as vice chair of the Education Committee.
"We are aware of the media reports that David has resigned from the Ulster Unionist Assembly group, but at this stage neither the Leader nor the Party have received formal notification from David of his resignation."