The Rt Rev Ian Cundy, who became the 37th Lord Bishop of Peterborough in 1996, has decided to step down next July to spend more time with his family, having been diagnosed with mesothelioma, a cancer of the lung cavity, a year ago.

When Bishop Ian (63) was diagnosed, he received messages of support from fellow cancer sufferers from across the world.

In a moving interview in April this year, the bishop told the The Evening Telegraph how those messages added to the support from his family and friends, and how the prayers of people "from mosques to synagogues in Peterborough" had provided him with the strength to fight the disease.

He said: "If you have cancer, my message is to go on living.

"We are all mortal. The only certainty about life is that one day, it will end.

"But you don't think about it – you just get on with living" were his poignant words to the ET.

On Tuesday, Bishop Ian, who is currently undergoing his second gruelling course of chemotherapy, announced that he would be retiring in July 2009, nine months short of his 65th birthday.

In a statement from his home in the grounds of Peterborough Cathedral, he said he had made the decision because it was clear that even with the benefit of a further course of treatment, he was unlikely to be able to meet the demands of his ministry.

Dean of Peterborough Cathedral Charles Taylor described the bishop as "remarkable" and said: "Speaking on behalf of the cathedral community, it is with great sadness we received the news that the bishop will retire next year.

"He has been a wonderful support to the cathedral, and although I have only known him for 18 months, I consider him a marvellous friend."

Father David Jennings, who is parish priest of St Peter and All Souls' Catholic Church, in Geneva Street, Peterborough, said: "In the five years I have known him, I have been inspired by his pastoral zeal, and I will be very sad to see him go, and we will miss him."

Members of the secular community also highlighted the bishop's contribution to the city.

Leader of Peterborough City Council John Peach said: "We will be sad to see him go, and we wish him all the best for the future."

Council chief executive Gillian Beasley added: "I was very sad to learn of Bishop Ian's retirement and his continuing health concerns.

"The council's relationship with the cathedral has flourished over the years that he has been bishop and his engagement in the wider community and agenda of the city.

"I will continue to cherish the time we have left to work with him until his retirement."

Since his diagnosis, the Suffragan Bishop of Brixworth, the Rt Rev Frank White, has taken on many of the services, assisted by the honorary assistant bishop in the diocese, the Rt Rev John Flack.

The process of appointing a successor to Bishop Ian will include extensive consultations within the diocese and wider church.