"I have decided to not participate in the electoral race for President of the Republic," the 35-year-old Garcia said in a statement from the Nuevo Leon government made public by his center-left Citizens' Movement (MC) party.
Six weeks ago, Garcia said he would stand down as governor to seek the candidacy of MC, which has remained apart from the main right-left opposition alliance bidding to oust the ruling National Regeneration Movement (MORENA) in the June 2024 vote.
Garcia then became embroiled in a dispute about who would replace him in Nuevo Leon, where his political opponents control the state legislature, which votes in the interim governor.
Garcia wanted an MC ally to take the helm but the opposition-controlled legislature this week voted in former state prosecutor Luis Enrique Orozco as replacement governor. Garcia's u-turn came just as Orozco was due to assume power.
Recent opinion polls have given Garcia around 10% support in the presidential race, putting him behind Xochitl Galvez, candidate of the main opposition alliance.
Both lag far behind the front-runner, former Mexico City Mayor Claudia Sheinbaum, candidate of the leftist MORENA.
MC will determine in the coming days how to move forward with its selection process, party leader Dante Delgado said.
The party is expected to announce its candidate on Jan. 20.
(Reporting by Dave Graham and Adriana Barrera; Editing by Nick Zieminski)