Updated: 5:19 p.m.

Democratic Senate hopeful Alan Khazei will drop out of the Massachusetts Senate race Thursday, Khazei spokesman Scott Ferson confirmed to Roll Call today.

The City Year co-founder posted lackluster third-quarter fundraising figures and struggled to find his footing after Harvard professor Elizabeth Warren entered the race. News of his decision to drop out was first reported today by the Boston Globe.

Khazei’s departure clears the way for Warren to win the Democratic nomination and take on Sen. Scott Brown (R) in November 2012. The matchup is set to be one of the closest and most contentious Senate races in the country.

Khazei was the final credible candidate standing in the way of Warren getting the Democratic nod.