Citing unnamed sources, Iran's Mehr News Agency said Khatami will withdraw from the race to give a boost to former Prime Minister Mir-Hosein Mousavi, the Tehran Times reported.
The source said Khatami and Mousavi met Sunday in Tehran to determine how Khatami is going to drop out of the race. Khatami reportedly said his motivation is to prevent a division among reform-minded supporters.
Khatami had previously said he would drop out of the race if Mousavi made up his mind to run, the Times reported.
Moussvi is a member of Iran's Expediency Council and on March 10 became the third reformist candidate to announce a presidential bid, Iran's Press TV reported Monday.