Updated at 5.17pm: Democratic Party chairman Lee Wing-tat has dropped his bid to run as a candidate for Chief Executive, local radio reported on Wednesday.
He made the announcement shortly after former Chief Secretary Donald Tsang Yam-kuen filed a nomination form with the Registration and Electoral Office on Wednesday.
Mr Tsang revealed that he had secured 710 nominations from the 800-member committee, preventing any rival from obtaining the minimum 100 nominations needed to run.
Most political observers predict Mr Tsang will easily become Hong Kong's next leader in what many in the territory cynically see as a one-horse race.
'The fact that I cannot get 100 nominations for the election shows the shortcomings of the political system,' Mr Lee said.
Despite his failed bid to challenge Mr Tsang, Mr Lee said the Democrats had learnt a great deal from the campaign. He said the party would field candidates in future Chief Executive elections.