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U.S. Republican vice- presidential nominee Alaska Gov. Sarah Palin waves to the crowd after U.S. Republican presidential nominee Senator John McCain delivered his concession speech in Phoenix, November 4, 2008. REUTERS/Mike Blake

ANCHORAGE, Alaska (Reuters) - Alaska Governor Sarah Palin, Republican John McCain's vice presidential running mate in 2008, said on Friday she will resign this month, an unexpected move that could signal a run for higher office.

Palin took no questions after a brief news conference in her hometown of Wasilla, Alaska, with Lieutenant Governor Sean Parnell and much of her state cabinet at her side. She gave no indication of her future plans.

"I'm not seeking re-election" in 2010, Palin said, adding she would transfer authority to Parnell on July 26.

Palin, McCain's surprise pick in the 2008 presidential race, rallied the party's conservative base but alienated others who felt she did not have the experience to be vice president.

She has been mentioned in the top three of the several Republicans who could vie for the party's presidential nomination in 2012. At this point, nearly 3 1/2 years from the 2012 election, those mentioned most often include Mississippi Governor Haley Barbour and former Massachusetts Governor Mitt Romney.

"We are not retreating, we are advancing in a different direction," Palin said. "We know we can effect positive change outside government at this moment in time."

Palin, 45, said her decision came after much "prayer and consideration." She did not want to waste time on "political blood sport" and cited public criticism of her actions and her family since the 2008 campaign.

"You are naive if you don't see a full-court press right now on the national level picking apart a good point guard," Palin said, using a basketball analogy.

Palin complained during the unsuccessful 2008 campaign about having her comments "filtered" by the mainstream media.

WHAT LIES AHEAD

But the announcement at the beginning of a three-day holiday weekend, with little Washington news expected, could give her wide access to the airwaves and make for a strong start at gaining public attention.

Sophia Nelson, a Republican strategist, said Palin's statement that she planned to work toward "positive change from outside government" was "code for 'I'm running for president.'"

Other analysts wondered if it was a smart political move.

Andrew Halcro, a Republican who ran against Palin in 2006, said he did not think the sudden move would help her chances at higher office.

"If she was trying to transition to the national stage, there was a much better way to do it," he said.

Princeton University professor Julian Zelizer said Palin's future in public life depends on the reason she resigned.

"If there is any evidence that the decision was a result of political problems or looming scandals, she is done," he said.

"The Republican Party already feels to be in a moment of crisis," after losing the presidency and control of both chambers of Congress to the Democrats. He noted that in 2008 "she revealed many weaknesses ... limited policy knowledge, association with fringe groups, weak performances on television and more."

She was cleared in November of wrongdoing in an abuse-of-power investigation into the firing of Alaska's public safety commissioner.

In May, Palin signed a book deal to tell her own story, for an undisclosed sum, with News Corp's HarperCollins.

"I look forward to helping others -- to fight for our state and our country, and campaign for those who believe in smaller government, free enterprise, strong national security, support for our troops, and energy independence," she said.

Palin established herself as a party outsider by promoting a natural gas pipeline project opposed by Alaska Governor Frank Murkowski. She ran against the governor in 2006, defeated him in the primary and then won the general election.

The project to ship abundant North Slope gas reserves to U.S. markets has been dimmed by the current recession and a recent sharp dip in natural gas prices.

(Additional reporting by Michelle Nichols, Andrea Shalal-Esa, Chris Wilson, Jeff Mason, and Robert Campbell in Mexico City, Writing by Doina Chiacu, editing by Jackie Frank)