TORONTO -- Ontario Finance Minister Dwight Duncan will be resigning his seat in the legislature next week.

A government source tells The Canadian Press that Duncan will make it official when he holds a news conference Thursday at Queen's Park.

Duncan had made it clear during the Liberal leadership race that he intended to resign his seat soon.

And Duncan had said he didn't want to stay in cabinet because premier-designate Kathleen Wynne needs a new team to lead the government.

Duncan's resignation will clear the way for a byelection in Windsor-Tecumseh riding. Duncan has represented Windsor-area ridings since 1995.

Last month, Duncan announced the province's projected deficit was down almost $3 billion to $11.9 billion thanks to higher than expected revenues and lower expenses.