The 25-year-old actress, who has played feisty Tina McIntyre for the past six years, will bow out of the soap in 2014 when her contract expires.
Speaking about leaving the soap, Michelle admitted that it was a difficult decision for her to make.
She said: “I have had the most amazing six years at Coronation Street and it was such a difficult decision to leave.
"But I felt it was the right time for me to make the next step in my career.
"I will miss Tina and will always be grateful to ITV and Coronation Street for giving me such an amazing role to play for my first ever acting job.
"Most of all I will miss the amazing people who work on the show, my acting colleagues, cast, crew, producers and writing team. I have met people who I know will be friends for life."
Show producer Sturat Blackburn promised that fans wouldn’t be disappointed with Michelle’s last storyline, but whether Corrie will be leaving the door open for a return is yet to be seen.
He stated:"There is more than a year of drama to come for Tina McIntyre before we bid farewell to Michelle and plans are already being made for what will be a powerful and gripping story.
"We will be sorry to see Michelle go but wish her every success for the future.”
Michelle has been dating former TOWIE star Mark Wright, 26, since the start of the year.
Reports that he was finding their long distance relationship a strain emerged a few weeks ago with Michelle being based in Manchester and Mark in Essex.
However, with Michelle now set to leave the show in a year, Mark may finally get his wish to have her all to himself if her career takes her to London.
[Related article: Michelle Keegan hits back over Mark Wright cheating claims]
[Related article: Mark Wright begs Michelle Keegan to stop doing sexy photoshoots]