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The actress will bow out from her role as Holly Barton in the summer after nearly three years on screen, the Daily Star Sunday reports.
Powles told the newspaper: "I have had an awesome three years at Emmerdale. I have made the best friends and have worked, had fun and learned so much with an amazing cast and crew.
"But after three years I am ready for some freedom to travel and be able to say yes to other projects and opportunities. I just want to say thank you to everyone at Emmerdale for making it such a brilliant place to work."
Emmerdale's series producer Stuart Blackburn added: "It's going to be a very dramatic year for the Barton family. I'd like to thank Sophie for all her hard work and commitment. Her energy, enthusiasm and positivity have made her a joy to work with."
The Daily Star Sunday has also revealed that Kirsty-Leigh Porter will be reprising her role as Holly's best friend Roz Fielding for a short stint in the build-up to the exit storyline.
James Thornton, who plays Holly's dad John, has also recently departed the show.
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