The People of Freedom did not support Prime Minister Mario Monti's government in two confidence votes Thursday, Italy's ANSA news agency reported.
"Yesterday we did not vote against," party Secretary Angelino Alfano said Friday, "because we would have caused the abyss of a provisional administration. We want to conclude this parliamentary term in an orderly fashion without sending the institutions and the country to rack and ruin."
The announcement, along with the party's official withdrawal of support for Monti came a day after Berlusconi said he is dropping his plans for retirement and seeking a fourth term as prime minister.
"This has nothing to do with Monti as a person, his service to the institutions and his honesty with the political parties and with us in particular," Alfano said.
Meanwhile, polls indicate 73 percent of Italian voters do not support Berlusconi's decision to run again, ANSA said.