Minnesota Republican Governor Tim Pawlenty won’t seek a third term, GOP sources have told the Associated Press. The news fuels speculation that Pawlenty may seek the 2012 Republican nomination, as those close to him had said that he was choosing between seeking a third term or the presidential nomination.

The officials, who spoke to The Associated Press on the condition of anonymity as the governor’s afternoon news conference was pending, said Pawlenty won’t rule anything in or out about his political future…

That said, two officials caution that no presidential announcement is imminent…

Pawlenty began calling political allies early Tuesday to disclose his plans. One individual who talked to the governor said he cited personal and political considerations, including his battles with a Democratic-controlled legislature. Pawlenty also has two daughters ages 16 and 12, and declining to run for another term would free him to seek more lucrative work than the $120,000-a-year governor’s salary.

The article notes that Pawlenty has pretty conservative credentials. He usually abides by right-wing orthodoxy, with the exception of a few issues such as prescription drugs from Canada and environmental issues. He had one issue of supporting a tax increase, though he’s otherwise been standing his ground.

More: Hot Air.