He added that he could have resigned on June 23 but, with the legal requirement for a byelection to be held within 89 days of such an announcement, that would have meant the local council election would have coincided with the general election.
"There would have been signs up for everything, it would have been too much - doing it this way people can get their nominations in and that process can be separate from the general election."
Councillor Adrienne Pierce, who was last month selected as the National candidate for Palmerston North, will be resigning on the same date and also taking unpaid leave of absence from June 23, he said.
"Adrienne and I will be unpaid for five months and the $72,000 savings from that will be re-allocated to the costs of holding a byelection."
For the vacant mayor and councillor positions, calls for nominations will open on August 31, closing on September 28, just days after the general election is held.
In line with statutory obligations, a combined byelection for a new mayor and councillor would then be held on November 24.
The nomination dates were decided in conjunction with the remaining councillors, Mr Yule said.
"The councillors are keen to work together on the transition Adrienne and I are making."
From when he left office, deputy mayor Sandra Hazlehurst, who has thrown the hat in the ring for the top job, would step into the mayoral role.
"Sandra is trying to be responsible about handling this transition just as the other councillors are."
Mr Yule stressed that if he were unsuccessful in his bid for the Tukituki seat he would not run again for mayor.
"I don't think it's ethical or right for someone to campaign for another position - I don't think you can have a bob each way, which others have done.
"I'm drawing a line in the sand - if I do not become an MP it will be a whole new life for me."
The National Party list was due to come out in July, but he said his presence on that was not an issue for him, and no deal had been done with the party to assure him a high ranking.
"I'm confident I can win the electorate seat but I am not taking anything for granted, I will be working very hard to make that happen."
He said he would be campaigning on the good economic track record of the Government, which was in a financial position to act on some of the local concerns.
"I have pushed for more police numbers and this Government has delivered that, and there are other social and environmental concerns that I have an interest in that we have the money to do something about now."
Despite speculation he had shifted from Napier, he said he still lived there, and could see no issue with the fact National had a Napier candidate who lived in the Tukituki electorate, and a Tukituki candidate who lived in Napier.
"People are not too worried about that stuff - they just want a good, solid, knowledgeable, hard working MP."
He said he would be finishing in his role as president of Local Government New Zealand on July 23, and added that another focus of his campaign would be on promoting a closer relationship between local and central government.
Tukituki Labour candidate Anna Lorck welcomed the fact that "at long last" Mr Yule was standing down.
"I have always said was in the best interest of Hastings," she said.
"Never has there been a more exciting time for Hastings - this is about the future, not the past.
"I'm bringing fresh leadership, vision and ideas. I'm here for the people, to earn their vote as their local MP, to represent them for Hastings' Tukituki electorate where I live and call home."
Tukituki Green party candidate Chris Perley said Mr Yule had taken the appropriate action.
"The most important thing is that he is taking leave and is not using the mayoralty to campaign."