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Chris Pincher has been suspended as a Conservative MP after allegations he groped two men.
The party said he had the whip removed after he was reported to Parliament's behaviour watchdog.
The former deputy chief whip quit his government job in a resignation letter on Thursday, saying he had "embarrassed myself and other people".
Former housing minister Kelly Tolhurst has been appointed as his replacement, Downing Street said.
Witnesses told the BBC Mr Pincher was seen "extremely drunk" at the Carlton Club, the Conservative Party members' club in London, on Wednesday night.
The Sun newspaper first reported the resignation, saying he was drinking at the club when he is alleged to have assaulted two other male guests.
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