The exiting producer said that "the events of March 15, 2019, are too raw for film at this time."
The film starring Rose Byrne is set to explore prime minister Jacinda Ardern's response to the attacks.
The movie has been heavily criticized for sidelining the 51 Muslim victims who were killed.
A producer of a Hollywood film about the Christchurch terror attacks in New Zealand has resigned from the project following a growing public backlash.
Plans for the film titled "They Are Us" faced almost immediate criticism on social media and beyond after it was announced by The Hollywood Reporter late last week that the film would focus on New Zealand prime minister Jacinda Ardern's response to the attacks rather than the 51 Muslims victims who were killed by a white supremacist terrorist.
On Monday, veteran New Zealand producer Philippa Campbell said the events of the attack were "too raw" to be dramatized as she resigned from the film.
"I've listened to the concerns raised over recent days and I have heard the strength of people's views. I now agree that the events of March 15, 2019, are too raw for film at this time and do not wish to be involved with a project that is causing such distress," she said in a statement to New Zealand media, via Deadline.
"The announcement was focused on film business and did not take enough account of the political and human context of the story in this country. It's the complexity of that context I've been reflecting on that has led me to this decision."
The proposed film is to be written and directed by Kiwi filmmaker Andrew Niccol and Australian actor Rose Byrne is set to star as Jacinda Ardern, according to The Hollywood Reporter.
Ardern, however, distanced herself from the project late last week. On Sunday, she confirmed that neither she nor her government had any involvement in the film. She added that making a movie about the Christchurch terror attacks felt "very soon and very raw" and that she should not be the focus of any such project.
"There are plenty of stories from March 15 that could be told, but I don't consider mine to be one of them," she said.
The Christchurch terror attacks took place on 15 March, 2019, when an Australian self-declared white supremacist called Brenton Tarrant opened fire on worshippers inside the Al Noor mosque in Christchurch. He then drove to the Linwood Islamic Centre where he continued his attack. He broadcast the attacks on Facebook Live. 51 people were killed and 40 were injured. It is the deadliest shooting in New Zealand's modern history.
Following the attack, Ardern won widespread praise for her compassionate response in which she moved to quickly tighten gun laws and announced weeks of national mourning in solidarity with the country's Muslim communities.
Brenton Tarrant was sentenced to life in prison without parole last August.
According to the report in THR, Niccol's script was developed "in consultation" with several members of the mosques affected by the tragedy. However, members of the two mosques involved in the attack have told local news outlets that they were "blindsided" by the film's announcement. A petition to shut down the film's production was also launched by the National Islamic Youth Association and has gathered over 60,000 signatures.
Lianne Dalziel, the mayor of Christchurch, told local media that movie crews would not be welcome in her city.
Insider has approached FilmNation Entertainment, the film's production company, as well as Andrew Niccol for comment.
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