Michael Ignatieff, left, Bob Rae and Dominic LeBlanc on Dec. 1, when all three were leadership candidates. Ignatieff is the last man standing. (Tom Hanson/Canadian Press)

The withdrawal of Toronto MP Bob Rae from the Liberal leadership race adds another twist to the party's efforts to crown an interim leader with broad support.

The Liberal party's national executive announced Tuesday morning that it had decided to consult with more than 800 party members to select an interim chief to replace outgoing Leader Stéphane Dion.

But Rae said at a news conference Tuesday afternoon he was dropping out of the leadership race for the "greater interest of the country." It is important that the Liberals have a permanent leader in place before Parliament resumes in January, he told reporters in Ottawa.

Rae's departure from the race leaves Toronto MP Michael Ignatieff as the sole contender. New Brunswick MP Dominic LeBlanc dropped out on Monday and threw his support behind Ignatieff.

It is not yet clear how Rae dropping out of the race will affect the national executive's planned consultation process. With just one contender left, it may result in the national executive determining a way to quickly garner the party's endorsement of Ignatieff.

Before the national executive announced it would consult 800 party members on who should be the interim leader, it was expected that the Liberal caucus alone would select a leader at its regular Wednesday caucus meeting.

After a three-hour conference call, however, the 25-member national executive agreed the party shouldn't rely strictly on the recommendation of the party's 77 MPs and 58 senators.

Liberal party president Doug Ferguson said the party's objective is to select an interim leader through a process that respects the principles of fairness and openness.

Broader consultation proposed

The broadened consultation would have included riding presidents, defeated candidates and the presidents of the party's student, women's, seniors' and aboriginal associations. The national executive was then expected to announce the interim leader on Dec. 17 and still hold the party's leadership convention in Vancouver in May.

Ontario Senator David Smith told CBC News said the proposed broader consultation was a reasonable compromise.

"We've got to move quickly and get the leader in place and I think that will be a good cross-section," Smith said. "I'm not sure that the result would be any different from the huge convention with thousands — which will still occur."

But thousands of party members would not have had a say in selecting the interim replacement — going against Rae's push for a process that allowed one member, one vote.

He argued that a caucus vote would be undemocratic and illegitimate because it would disenfranchise Liberals in the 231 ridings not represented in the House of Commons.

Ignatieff supporters have said the matter must be settled quickly and can be decided by the Liberal MPs in a vote, which would likely pushed their favoured contender to victory. Ignatieff's campaign released a list of 44 MPs who were supporting him for the party leadership on Monday.

Dion announced in a press release on Monday that he will step aside ahead of his planned spring departure so the interim leader can be ready when Parliament resumes in January. He will resign as soon as a successor is chosen.

With files from the Canadian Press