In a letter read out on television, Abdullah said this decision was made to allow Hussein 'more freedom to take up other posts.'
He also stressed the crown prince is an honorary post rather than a position of power. Hamzeh Bin Hussein, 24, is the son of late King Hussein and his fourth wife, Queen Nour.
Hamza, 24, is a college student in the US.
"Your presence in this symbolic post restricts your freedom and restricts our ability to assign you some responsibilities, as its symbolic nature bars you from shouldering some responsibilities you are capable of conducting in the best possible way," Abdullah said in his televised message.
"As for the position of crown prince, I will continue, guided by the constitution and the good of our beloved Jordan and our noble Hashemite message, to give it my sincere attention."
Though he declined to name a successor, the new heir is expected be the king's eldest son, 10-year-old Hussein.