Sen. Kay Bailey Hutchison (R) announced Thursday morning that she was opening up an exploratory committee to run for Texas governor in 2010 and transferring $1 million from her Senate campaign account into this new state-regulated account.

“Today, I am filing an exploratory committee so I can begin the process of organizing a campaign for Governor of Texas. I am not yet a candidate, but Texas law requires this first, important step,” Hutchison said in a statement released by her exploratory committee.

Hutchison is widely expected to run for governor in 2010 and is considered a favorite in the upcoming race. Gov. Rick Perry (R), currently serving in his second full term, is not termed out of office, and he has indicated that he might run again.

The Senator has suggested that she will resign her seat once the campaign is in full swing. Hutchison’s Senate seat is not up until 2012.