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Arizona Senator Jon Kyl to Retire

Three-term Sen. Jon Kyl will announce his retirement at a noon ET news conference Thursday in Phoenix, two Republican sources confirmed to Fox News.

The Arizona lawmaker, the No. 2 Republican in the Senate, will be the fifth senator scheduled for re-election next year to announce a departure from Congress in 2012.

Kyl, 68, served four terms in the House before winning a Senate seat. In 2006, he was named one of the 10 best senators by Time Magazine.

"He's leaving now at the top of his game, he has money in the bank, and he’s one of the few long-term incumbents who doesn’t face a Tea Party challenge," a senior Senate GOP aide with knowledge of Kyl’s decision said.

Kyl has never lost an election, and would not have been expected to lose a vote for a fourth term. He will be 70 years old when he leaves.

South Carolina Republican Sen. Lindsey Graham called the senator "one of the most dependable and solid leaders I have ever known."

"His decision to retire will be a great blow to the Republican Conference and Senate as a whole. Jon is one of the smartest members of the Senate and knows how to get things done. What he brings to the table will be very difficult to replace," Graham said.

Kyl will return to Phoenix, the source said, but he could decide on a “hybrid” position that keeps him connected and returning to Washington.

Replacing the senator, who is a major force in finance and defense policy, could prove to be an interesting fight.

Several officials, both GOP and Democratic, speculated Thursday that should Kyl resign, Rep. Gabby Giffords, rapidly recovering from a recent shot to the head at a constituent meeting, could be a contender. Other names mentioned are Homeland Security Secretary Janet Napolitano, who is also a former Democratic governor of Arizona; and Republican Rep. Jeff Flake, a rising conservative star and budget hawk.

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