Florida-based Exodus International had been operating for 37 years, devoting itself to helping people 'seeking freedom from unwanted same-sex attraction'.
Exodus promoted the belief that homosexuality could be reduced or even eliminated through prayer and counselling.
Change of heart: Alan Chambers, president of Exodus International, with his wife, Leslie
He told The Associated Press: 'Exodus is here for people who want an alternative to homosexuality. There are thousands of people like me who have overcome this.'
In an extraordinary change of heart Alan Chambers, the ministry's president, apologised ahead of the closure.
He admitted: 'For quite some time we've been imprisoned in a worldview that's neither honoring toward our fellow human beings, nor biblical.'
Mr Chambers, who served as president for more than 11 years, apologised to the entire gay community for 'years of undue judgment by the organisation and the Christian Church as a whole'.
'I am sorry that so many have interpreted this religious rejection by Christians as God's rejection.
'I am profoundly sorry that many have walked away from their faith and that some have chosen to end their lives.'
The board of directors voted to shut down Exodus to start a new ministry that would create 'safe, welcoming and mutually transforming communities'.
'A new generation of Christians is looking for change – and they want to be heard,' Exodus board member Tony Moore said in a statement.
Brad Allen, a former Exodus employee who came out last year, made a TV appearance with Mr Chambers on 'Our America with Lisa Ling',
Mr Allen said: 'I was incredibly proud of him for doing this — and he's taking flak from all sides.'
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