In a significant boost for Prime Minister Boris Johnson ahead of a Dec 12 election, Mr Farage said he did not want anti-Brexit parties to win the election so was standing down candidates in 317 of the 650 seats up for grabs.
Labour chair Ian Lavery said the Brexit party decision was part of a bid to satisfy US President Donald Trump and privatise parts of the NHS.
'Our action prevents a second referendum from happening, ' Farage said.
"And we will also take on the rest of the Remainer parties".
Boris Johnson's opponents are already though using Mr Farage's decision to attack him, making the claim that is shows they are peas in a pod.
Jeremy Corbyn's Labour Party said it would improve housing and work conditions for veterans.
It means the party will field only one candidate in the county - the Labour-held seat of Canterbury, where Owen Prew is candidate.
After weeks of complaining about Johnson's Brexit deal, he reversed course on Monday, saying a video showing Johnson pledging not to extend the post-Brexit transition period beyond the end of 2020 had changed his mind.
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"If I was Boris Johnson I would be pretty pleased by this".
But the prime minister refused and Farage has now given in, noting wryly: "In a sense we now have a Leave alliance, it's just that we've done it unilaterally".
Farage has been under huge pressure from Brexit supporters not to run candidates in seats where there is a risk of splitting the Brexit vote. "I thought to myself overnight, "That sounds a bit more like the Brexit we voted for".
Labelling the agreement struck with the European Union by Prime Minister Boris Johnson as a "gigantic con", calling it a "Remainer's Brexit".
The Brexit Party's threat to Johnson was one of the most unpredictable elements of the election: Farage has transformed United Kingdom politics over the past decade by poaching Conservative voters to force a succession of prime ministers toward ever tougher positions on Europe.
Britain's main political parties are using Armistice Day to showcase plans to improve the lot of veterans if they win the December 12 general election.
Labour has vowed to renegotiate the Brexit divorce deal with the European Union, then hold a new referendum for British voters to decide on whether to leave the bloc on those terms or remain.
"In terms of numbers of votes, the Brexit Party is of much more danger to the Tories than to Labour", tweeted Jon Worth of the College of Europe in Bruges.
Fielding then suggested that the Brexit Party have revealed itself to be "the Conservative Party in other clothes".