Sheikh Elhilali has taken indefinite leave and remains in a Sydney hospital after suffering chest pains during a meeting with Muslim leaders about his future.
He's since released a statement saying his recent comments about women were inappropriate for western society, but attacking the media and other groups for slandering and defaming him.
The president of the Lebanese Muslim Association (LMA) which runs the Sydney mosque where the Egyptian-born cleric preaches read a statement from Elhilali outside the Sydney hospital where he was being treated.
"In due course I will take the necessary decision that shall lift the pressures that have been placed on our Australian Muslims and which will benefit all Australians," Sheikh Elhilali said, announcing his intention to take leave.
He apologised for the second time for any offence caused by his comments and described women as "the cherished pearls, the dearest thing in the world".
The beleaguered mufti conceded his comparison of scantily-clad women to uncovered meat inviting sexual attack was “inappropriate and unacceptable for the Australian society and the Western society in general".
LMA president Tom Zreika stressed that Elhilali had not been sacked.
"He has asked for indefinite leave from the duties at Lakemba mosque," Mr Zreika told the ABC.
"That is the limit of our powers and it came from him, it didn't come from us.
"If he wants to resign, that's the matter for the mufti of Australia."
Political firestorm
The previously defiant mufti made the request for indefinite leave after a five-day political and media firestorm sparked by his remarks.
Prime Minister John Howard called for Australian Muslims to act to defend their reputation, suggesting they could face a backlash from other Australians, while other politicians demanded the sheikh be charged with incitement to rape.
The mufti then poured fuel on the fire by describing the row as "a storm in a cup" and refusing to resign until "after we clean the world of the White House first".
Yesterday a transcript of a radio interview the sheikh gave earlier this month praising jihad (holy war) fighters in Afghanistan and Iraq further increased the pressure on him to go, with Muslim leaders joining the chorus.
Australia, a close ally of the United States, has troops in both countries.
The preacher was quoted as saying jihadists fighting US and coalition forces as well as those fighting Israel, were liberators.
"Jihad of the liberators of Palestine, that's the greatest and cleanest and highest," he said in the Arabic-language radio interview earlier this month.
"We are talking about jihad of liberating our land, jihad of Muslim Afghans in their land -- that's jihad," he added.
The controversial cleric, who reportedly suffers from asthma, was in stable condition but could remain in hospital for up to three days, a Canterbury Hospital official said.