A small, civilian office will be set up instead to maintain political contacts.
“The conditions to continue UNSMIS were not filled,” France’s UN ambassador Gerard Araud said after a Security Council meeting.
The UN mission had been part of envoy Kofi Annan’s six-point peace plan. But continued violence made the observers’ mission increasingly difficult.
A bomb exploded close to their hotel in Damascus on Wednesday. The observers’ patrols were suspended in mid-June because of the “significant risk to their lives” and diplomats said the condition for renewing their mandate – a reduction in violence – had not been met.
Russia warned earlier that pulling out of Syria would have “serious negative consequences” for the region.
Moscow’s UN envoy Vitaly Churkin said Russia, which has vetoed three UN Security Council resolutions on Syria, wanted the UN to make an international appeal for the Syrian conflict to end.
Kofi Annan resigned as UN-Arab League envoy to Syria a fortnight ago, complaining of a “clear lack of unity” in the Security Council.
Although the 101 remaining military observers will leave Damascus over the next eight days, a civilian liaison office is due to remain and a new special envoy is expected to be appointed.
Vitaly Churkin said Russia had called for a meeting on Friday of Security Council members as well as representatives from Saudi Arabia and Iran to discuss the crisis.
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