Alice Munro, shown in November 2004, will release her newest collection, Too Much Happiness, in October. Alice Munro, shown in November 2004, will release her newest collection, Too Much Happiness, in October. (Frank Gunn/Canadian Press)

Two-time Giller Prize winner Alice Munro has withdrawn from this year's competition saying she's clearing the way for younger writers to capture the $50,000 annual prize.

Munro's publisher, McClelland and Stewart, announced late Friday that the 78-year-old author was pulling her short story collection, Too Much Happiness, from the running.

"From a publisher's point of view it's too bad, but it's absolutely understandable, and this is Alice Munro, she's a genuinely nice person," said publisher Douglas Gibson.

"It's very hard to say no to someone who's being so generous, and it's always hard for me to say no to Alice Munro, so, of course, we went along with her."

Munro won the Giller in 1998 for The Love of a Good Woman and in 2004 for Runaway.

Munro is still winning awards. The prestigious Man Booker International Prize bestowed her an achievement award this year.

Organizers of the Scotiabank Giller Prize, to be handed out Nov. 10, say they are disappointed by the news but respect Munro's decision.

"I wouldn't try and talk her out of it; I wouldn't presume to do that," said Giller spokesperson Elana Rabinovitch.

Munro is scheduled to launch her latest book at the International Festival of Authors in Toronto this October. She will be interviewed by British novelist and memoirist Diana Athill, 91.

Previous Giller winners include Margaret Atwood, Michael Ontdaatje and M.G. Vassanji, who won in 1994 and 2003.

With files from The Canadian Press