The Victorian Electoral Commission on Thursday confirmed it had received an application from Ms Patten's Reason Party to voluntarily deregister it.
It would mean a party with that name or something closely resembling it cannot re-register as a political party until after the 2026 state election.
Ms Patten confirmed she was "absolutely no chance" of running in 2026 in an attempt to make a comeback to state parliament.
"I will continue to encourage others," she told AAP.
"I actually said at the beginning that two terms was all I wanted and now hopefully (I'll be) using my skills to affect change outside parliament."
Ms Patten, a former independent fashion designer and sex worker, founded the Australian Sex Party in 2009 before changing its name to the Reason Party in 2017.
"It was energy to keep going," she said.
"We ran for 14 years and have a lot to be proud of."
Throughout her two terms in Victorian parliament, Ms Patten championed social reform including anti-vilification legislation and also led an inquiry into voluntary assisted dying laws.
She served as chair of the Legislative Council Legal and Social Issues Committee and advocated for a medically supervised injecting centre in North Richmond.
She was first elected to Victorian parliament in 2014 and narrowly re-elected in 2018.
Ms Patten left parliament at the end of 2022 after losing her Northern Metropolitan Region seat to disgraced former Labor minister-turned-Democratic Labour Party hopeful Adem Somyurek.
Earlier that year, the former Reason Party leader was diagnosed with cancer and underwent surgery to remove one of her kidneys.
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