The Hastings and Rye MP said she was "not finished with politics" but would not be defending her seat.
Ms Rudd, who had a majority of 346 at the last election, resigned from the cabinet and surrendered the Tory whip over Brexit in September. She was not among those Tories who had the party whip restored by the prime minister on Tuesday.
Lord Cormack doesn't agree with the decision of Boris Johnson.
In the House of Lords, he told peers:
"Our country has been torn apart; families and communities have been divided.
We have to seek to come together and it would be no bad thing if the Conservative Party took a lead in this. Some of the servants of our party, who have collectively given decades of service, have had the Whip restored—they should all have had the Whip restored.
I felt very sorry this morning when I learned that Amber Rudd, who announced that she would not seek re-election, had requested the Whip and had her request turned down. That is not acting in the spirit of generosity or magnanimity and I urge my noble and right honourable friends in the Government to think again. These are people who have given long and distinguished service. We owe them a great deal".
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