The player posted on Instagram to announce his resignation as skipper:
The former England international was suspended after being spotted out "partying" after Villa's exit from the Premier League, as reported by BBC Sport.
Agbonlahor has suffered a poor season, both individually and with his current crop of team-mates, as the Villa Park club crashed out of the top division.
The 29-year-old stalwart watched long periods of the campaign from the sidelines and stands as the club became rooted to the bottom of the table.
The attacker provided just one goal and two assists to the team's relegation survival battle in the Premier League, according to WhoScored.com.
Villa issued a statement on their official website regarding the veteran and confirmed his suspension has now been lifted, making him available for future matches.
The statement read:
Aston Villa Football Club can confirm the investigation concerning Gabby Agbonlahor's conduct has reached a conclusion.
The player has received a substantial fine and been reminded of his responsibilities as a professional footballer at Aston Villa.
His suspension is now lifted and he will be available for selection from Monday.
Gabby has also advised he wishes to relinquish the role of Club captain.
Despite the player's recent actions, he could be a vital member of the team's fight to win promotion from the Championship next term.
Agbonlahor has years ahead of him yet, and he could atone for a poor season by guiding his side back to the glory of the Premier League.