"My campaign is suspended as of now," the 62-year-old told a FIFA congress at the end of his final lobbying speech.
Sexwale, a former prisoner in an anti-apartheid jail with Nelson Mandela, had conducted a low-key campaign and was always considered an outsider in the five-man contest.
Sexwale said he was prepared to work with any of the four remaining candidates and wanted a president who can get FIFA "out of the morass" it is in because of corruption scandals.
His withdrawal left Gianni Infantino, Sheikh Salman bin Ebrahim Al Khalifa, Prince Ali bin Al Hussein and Jerome Champagne in the first round of voting.
