UPDATE: Denham made it official today, he is dropping out of the lieutenant governor's race to run for the Assembly.

Some Republican officials are asking state Sen. Jeff Denham to consider dropping out of the lieutenant governor's race in order to run for the state Assembly, according to a Republican source close to Denham, R-Atwater.

The source stressed that Denham has not made up his mind and is still focused on his lieutenant governor campaign. But several recent developments have changed the landscape.

Follow along:

The first domino to fall was Gov. Arnold Schwarzenegger's selection of state Sen. Abel Maldonado, R-Santa Maria, as his nominee to replace former lieutenant governor John Garamendi, who left the post when he was elected to Congress.

Maldonado must still be confirmed by the Legislature and leading Democrats have promised a fight. But Maldonado broke the news to The Bee last week that he was running for lieutenant governor in 2010 even if lawmakers don't confirm him to the one-year term.

That has some Republicans worried about an expensive primary fight between Denham and Maldonado. Some Republicans who support Denham worry that his funds might be depleted for the general election and that some donors might want to spend money in other Republican races, the source close to Denham said. (It should be noted that there is a third Republican in the race -- Sam Aanestad, R-Grass Valley -- so there might be a contested primary no matter what Denham decides.)

Denham's options grew last week when Assembly Member Tom Berryhill, R-Modesto, announced he was running for the state Senate seat of Dave Cogdill, R-Modesto, who is leaving after his first term. Some Valley Republicans want Denham to remain in the Legislature and think he would be a good match to replace Berryhill, the source close to Denham said. Denham would have to move however, because he lives just outside the district.