Surrey Mayor Dianne Watts has announced she will not run to replace Gordon Campbell as leader of the BC Liberal Party.

Watts was widely considered an ideal candidate because she's not linked to the unpopular sitting premier or the harmonized sales tax.

In a statement issued Sunday night, Watts cited four reasons for her decision, including her family, her ongoing commitments in Surrey and what she described as the polarized political climate at the provincial level.

She also said the party will be best served finding new leadership from within.

"They will go through an important period of self-examination and reflection that is naturally part of any leadership race," she said. "This process should, and I believe in many ways must, be an internal one."

Watts added that she may be ready to enter provincial politics eventually.

"I really want to thank everyone who has sent me messages of support and encouraged me over the past number of weeks. I am both grateful and humbled."

Several potential candidates remain, including current cabinet ministers Kevin Falcon, George Abbot, Mike de Jong and Rich Coleman.

Former Liberal cabinet minister Blair Lekstrom may also prove to be a strong candidate, having distanced himself from the Campbell government earlier this year by quitting cabinet and caucus over the HST.