The Japanese manufacturer had been expected to quit MotoGP, having already lost rider Alvaro Bautista to Honda for next season, but Suzuki have also announced a planned return to MotoGP for the 2014 season.
Spaniard Bautista finished the 2011 season in 13th place but has already signed to race for the San Carlo Honda Gresini team next season.
A statement released by Suzuki read: "Suzuki Motor Corporation has decided to suspend temporarily its participation in FIM Road Racing Grand Prix MotoGP from 2012.
"This suspension is to cope with tough circumstances mainly caused by the prolonged recession in developed countries, a historical appreciation of Japanese Yen and repeated natural disasters.
"Having an eye to returning to MotoGP in 2014, Suzuki will now focus on developing a competitive new racing machine for that class.
"Suzuki will continue motocross racing activity and support of road racing activities using mass-produced motorcycles, by obtaining FIM homologation and co-operation with the supplier of its development racing kit parts."