Cr Watson, who has served for three consecutive terms, was recently diagnosed with pancreatic cancer with secondary liver cancer.

"I love being a councillor and I'm very proud to have had the opportunity serve this community for many years, and following on from my grandfather and father before me," Cr Watson said in Thursday's announcement.

"However, with this news my priority is my health and my family and friends.

"My time on council has been such a rewarding period of my life with my crazy ideas as my signature."

In August, Cr Watson mooted a plan for a ride to ascend Wodonga's Huon Hill and it was included in a council document flagging priority projects for the city.

"I wish the whole council great achievements, working as one delivering for our community and the greater region," he said.

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Cr Watson was first elected to council in 1997, serving as mayor in 2001-2002, before stepping down in 2004.

Wodonga mayor Kev Poulton paid tribute to Cr Watson's longstanding service to the community.

"John brought with him experience and knowledge to the council table that was invaluable, particularly for us as a newer councillor group," he said.

"It's the decisions he made with his fellow councillors going back many years that we as a city are benefiting from today whether it is the boost to our economy from Logic or as we see Baranduda Fields come out of the ground.

"We know that John will continue to have the full support of our community. He has a great passion for our city and its people and I know they hold him in high respect and with great affection in return."

Cr Watson is no stranger to tragedy associated with cancer. In October 2017, his wife Christine died in Albury after a battle with breast cancer.

Cr Watson has served as deputy chair of the Albury Wodonga Regional Cancer Centre trust fund.

The council has notified the Victorian Electoral Commission of Cr Watson's resignation which is effective immediately.

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