The International Olympic Committee (IOC) said in November that six cities, including Beijing and Stockholm, had launched bids to host the games.
On Friday, the Moderate party said Stockholm would not proceed with such a bid.
"Arranging a Winter Olympics would mean a big investment in new sports facilities, for example for the bobsleigh and luge," the Moderate party said in a statement.
"There isn't any need for that type of that kind of facility after an Olympics."
(Reporting by Simon Johnson; Editing by Alison Williams)
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