Tuesday's resignation of Oscars co-producer Brett Ratner.
Ratner directed Murphy in "Tower Heist," which opened in theaters on Nov. 4.
"I appreciate how Eddie feels about losing his creative partner, Brett Ratner, and we all wish him well," Academy President Tom Sherak said in a statement Wednesday.
Murphy's statement: "First and foremost I want to say that I completely understand and support each party's decision with regard to a change of producers for this year's Academy Awards ceremony. I was truly looking forward to being a part of the show that our production team and writers were just starting to develop, but I'm sure that the new production team and host will do an equally great job."
This would have been Murphy's first time hosting the Oscars.
Hosting the Oscars was something Murphy wanted to do and was excited about do. During an October interview with David Letterman, Murphy said he wanted to try something he hadn't done before.