The Ukip leader this morning ended speculation over whether he would stand as an MP, saying he wanted to concentrate on the forthcoming European Parliament elections.
He told BBC Radio Four's Today programme: "I don't want to do anything that deflects from the European election campaign, so I am not going to stand in this by-election.
"I want to focus the next three weeks on winning the European elections."
He claimed that his eyes were on a "much bigger prize than the Newark by-election and that is the General Election in 2015".
Shamed MP Patrick Mercer triggered a dramatic by-election last night by quitting the House of Commons over a cash-for-questions scandal.
There was much talk over whether Mr Farage would stand in a bid to win a first Parliamentary seat for the anti-Brussels party.
Former Tory Mr Mercer, 58, had been sitting as an independent MP for Newark, Nottinghamshire, since losing his party's whip.
He resigned after it emerged a Westminster watchdog was poised to suspend him from Parliament for six months.
The former Army officer confessed to being "ashamed" of his conduct.
As an ex-soldier, I believe that when you have got something wrong, you have to 'fess up' and get on with it
He was alleged to have tabled Commons questions after receiving £4,000 from a lobbying firm seeking the re-admission of Fiji to the Commonwealth.
He said: "It is clear Newark needs to be represented properly. I can only humbly apologise.
"As an ex-soldier, I believe that when you have got something wrong, you have to 'fess up' and get on with it."
Some Tories were last night speculating that London Mayor Boris Johnson - who is thought to be looking for a safe Tory seat to re-enter the Commons - could throw his hat into the ring for the Newark by-election.
However the party has already picked a candidate, Robert Jenrick, which may rule the option out.
Meanwhile Mr Farage yesterday warned that bids to smear Ukip were "a disastrous mistake" that would backfire on the political establishment.
It followed the launch of a cross-party campaign branding Ukip racist.
He said: "All three Westminster parties are levelling the charge of bigotry.
"But the electorate is not in the mood to be intimidated.
"I call on all fair-minded British people to teach these creeps a lesson."
Ukip council candidate William Henwood quit last night after saying comedian Lenny Henry "should emigrate to a black country".
Mr Henry had criticised a lack of diversity in people appearing on television.
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