Hutchison began calling her colleagues this morning "to tell them she is not running," said an aide to one Republican senator who was contacted by Hutchison.
Hutchison intends to remain as chairwoman of the Republican Policy Committee, meaning she will still have a seat at the leadership office.
Hutchison's withdrawal makes the battle for Conference chair a two-man race between Sens. Lamar Alexander (R-Tenn.) and Richard Burr (R-N.C.). The election is set for Thursday. The current Conference chairman Sen. Jon Kyl (R-Ariz.) is taking over as minority whip for the retiring Sen. Trent Lott (R-Miss.).