The ICC issued an arrest warrant against Putin in March meaning that Pretoria, due to host the Brazil, Russia, India, China and South Africa (BRICS) bloc summit this year, would have to detain him on arrival.
"Yes, the governing party ... has taken that decision that it is prudent that South Africa should pull out of the ICC," Ramaphosa said during a press conference co-hosted with the visiting President of Finland Sauli Niinisto.
Ramaphosa said that the decision, which follows a weekend meeting of the ANC, was reached "largely" because of what is perceived as the court's unfair treatment of certain countries.
"We would like this matter of unfair treatment to be properly discussed, but in the meantime, the governing party has decided once again that there should be a pull-out," he said.
The arrest warrant against Putin followed accusations that the Kremlin unlawfully deported Ukrainian children.
On whether South Africa would arrest Putin, Ramaphosa said "that matter is under consideration".
But his party's secretary general Fikile Mbalula earlier declared that "Putin can come anytime in this country".
"This ICC does not serve the interest of all but the interest of a few," Mbalula told a separate news conference.