Budapest's assembly has approved a motion to withdraw the city's bid for the 2024 Olympic Games.
Wednesday's decision leaves Los Angeles and Paris as the only remaining candidates. The International Olympic Committee will choose the host city in September.
Budapest's decision to withdraw came after a new political group appeared to have successfully gathered enough signatures to force a city-wide referendum on the bid.
Hungarian prime minister Viktor Orban's government said the change of heart by opposition politicians who earlier supported the bid had shattered consensus on the issue.
Political analysts said holding the referendum and keeping the issue on the agenda for months did not favour Orban's plans to seek a fourth term in elections scheduled for April 2018.
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