Gelmini, who denies the accusations, told reporters on his return from South America on Saturday night that Pope Benedict had approved his request to leave the priesthood - known in Church terms "reduced to the lay state".
Gelmini, 83, said no longer being a priest will allow him to better defend himself legally without involving the Church.
A magistrate in the city of Terni in central Italy is due to decide soon whether Gelmini should be ordered to stand trial or whether the case should be closed.
Four men who were treated at one of Gelmini's rehabilitation centres last August accused him of having sexually abused them.
Lawyers for Gelmini have said the men were kicked out of a rehabilitation centre and accused them of trying to get revenge.
Gelmini, who counts powerful allies in Italian politics, founded his "Comunita Incontro" (Encounter Community) in the central Umbria region in 1963 to help drug addicts. He later opened other centres in Italy, Latin America and Asia.
His work has drawn praise from those in power. When he turned 80 in 2005, then-Prime Minister Silvio Berlusconi flew to his birthday celebration to deliver a speech.
Gelmini's new status means he cannot exercise the priestly ministry except in rare exceptions to administer to those in danger of death.
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