One of the territory's top aboriginal leaders wants to make a run at the premier's chair.

Ed Schultz, grand chief of the Council of Yukon First Nations (CYFN), announced this morning he will run for the leadership of the territorial Liberal party.

This morning, during the CYFN's special assembly on its constitution, Schultz told the group he will step down as grand chief to take on the new political challenge.

The veteran politician was unavailable for comment this morning after informing the assembly of his decision.

Schultz has been the umbrella organization's grand chief since a byelection in February 2000. That byelection was held because of the resignation of Albert James.

Schultz won the byelection on the second ballot, defeating former Tr'ondek Hwech'in chief Steve Taylor, Carcross-Tagish elder Stanley James and Vuntut Gwitchin Chief Joe Linklater.

In 2003, Schultz was handily re-elected on the first ballot with 46 of the 54 valid votes, defeating three contenders. The second-highest candidate had five votes.

Schultz is no stranger to non-aboriginal politics. In 1991, he became the first aboriginal to sit on Whitehorse city council. He served for one turn from 1991 to 1994.

In 1993, Schultz sought the federal Liberal party's nomination to run in the Yukon. He lost to the late Don Branigan. Branigan failed to knock off then-NDP leader Audrey McLaughlin.

In his time as the grand chief, two more member first nations signed land claims agreements the Kluane First Nation and the Ta'an Kwach'an Council.

As well, four new members joined the CYFN, bringing the total membership up to 15. The four are Gwitchin first nations.

Currently, the CYFN is studying its constitution and whether to change its shape and mandate in the light of the fact it was created to help the members negotiate land claim packages.

Now, 13 of the 15 members already have land claims and self-government packages.

Schultz becomes the fourth contender for the leadership contest.

The race was called for last September by leader Pat Duncan. Duncan is the former premier who led the party to its first-ever win in 2000 and one of the worst-ever defeats a government has suffered in the Yukon in 2002.

She wanted the leadership because she felt whoever the leader is for the next territorial election will need to have a new mandate from the party. Last October, she entered the race to succeed herself.

Ross River headstone maker and musician Elvis Presley is also in the running.

Recently, Whitehorse real estate agent Arthur Mitchell threw his hat in the ring as well. Mitchell ran for the Liberal party in the 2002 election in the riding of Copperbelt.

Both Duncan and Mitchell have noted that the fact that well-respected Yukoners have entered the race is a good sign for the party.

'It's an exciting time to be a Liberal,' said Duncan. 'It's a tremendous statement about the party.'

Mitchell agreed about what this means for the party.

'I think it's very positive for the Liberal party that we're attracting viable candidates,' he said. 'It'll only make the party grow.'

Both candidates are not concerned about the race being divisive for the party.

'Past June 4, we are all Liberals and we are a united front presenting an alternative to a Yukon Party government that many Yukoners are dissatisfied with,' Duncan said.

The vote will be held June 4 at the Gold Rush Inn.

The deadline for candidates to get their nomination forms in is March 14.

Premier and Yukon Party Leader Dennis Fentie threw in his two cents' worth on Schultz's decision to leave the CYFN.

'Certainly, from my perspective, knowing Mr. Schultz as I do, that he deliberated long and hard on this decision,' Fentie said.

'It is not an easy decision to make. Now that it is made, I look forward to what Mr. Schultz has to bring forward in terms of his vision for the Yukon.'

Schultz had to give the CYFN chiefs 30 days' notice that he is departing. Fentie was asked if Schultz's decision to enter party politics would be a problem for the premier to deal with him in his final days as grand chief.

'I would never allow partisan politics to get in the way of doing the good work for the Yukon,' said Fentie. 'As long as Mr. Schultz remains in the seat as grand chief, I will work together with him on behalf of all Yukon.'

Chuck Tobin contributed to this story.