Her move follows a leak of emails appearing to suggest that party insiders tried to thwart the campaign by Hillary Clinton’s rival.
Vermont Senator Bernie Sanders had pressed for the party chairwoman to step down.
Hillary Clinton is to be officially nominated at the Philadelphia meeting.
Bernie Sanders had said Debbie Wasserman Schultz “should not be chair” of the Democratic National Committee.
He told ABC’s This Week: “And I think these emails reiterate that reason why she should not be chair.”
In a statement, Debbie Wasserman Schultz said she would “step down as party chair at the end of this convention.”
“We have planned a great and unified convention this week and I hope and expect that the DNC team that has worked so hard to get us to this point will have the strong support of all Democrats in making sure this is the best convention we have ever had,” she said.
Bernie Sanders and his supporters have also expressed disappointment at Hillary Clinton’s choice of Virginia Senator Tim Kaine as her running mate, preferring someone further to the left.
However, the Vermont senator did say: “I have known Tim Kaine for a number of years… Tim is a very, very smart guy. He is a very nice guy.”
Hillary Clinton’s campaign received a boost on July 24 with the announcement that Michael Bloomberg, who was elected New York mayor as a Republican, will speak to endorse her this week.
The Democrats’ four-day convention starts on July 25, with speeches by First Lady Michelle Obama and Bernie Sanders.
The Democratic convention comes just after the Republican convention that saw Donald Trump declared the Republican presidential nominee.
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