AUSTIN -- U.S. Sen. Kay Bailey Hutchison, R-Texas, won't be running for governor in 2006.
Her campaign announced Friday night that Hutchison will be seeking reelection to the Senate.
Hutchison earlier Friday appeared in Plano and said she was near a decision on whether to challenge GOP Gov. Rick Perry.
Perry called Hutchison a "champion'' for Texas in Washington and said her decision to seek reelection to the Senate is "great news for Texas.''
Hutchison's campaign manager Terry Sullivan said she will discuss her decision and why she believe it's in best interest of Texas on June 27.
Sullivan, when reached by The Associated Press, declined further comment on the 61-year-old senator's decision and motivation.
Hutchison's advisors said the Republican simply likes being a U.S. Senator, and that's why she won't challenge Perry.
The advisers, who asked to remain anonymous, said she had been leaning toward staying in Washington several weeks before Friday's announcement.
Before the surprise announcement, all public signs had pointed to a Hutchison bid for governor.
The two-term U.S. Senator figured to be a tough challenge for Perry, who has struggled during his first full term as governor.
Perry has been unable to lead lawmakers to solve a school funding crisis despite several attempts.
Hutchison had previously promised to seek only two terms in the U.S. Senate -- which helped fuel speculation that her next political bid would be for Texas governor.
Comptroller Carole Keeton Strayhorn announced Saturday she will challenge Perry in 2006.