Kenya Kwanza Alliance principals have settled on Deputy President William Ruto as the outfit's presidential candidate.
Bungoma Senator and Ford Kenya leader Moses Wetang'ula made the revelations at a rally in Nakuru on Saturday.
He said the DP will now face off with Raila in the August 9 polls.
Speaking in Dundori, the Ford Kenya leader and Bungoma senator urged residents to back Kenya Kwanza in the August polls.
"We in Kenya Kwanza have agreed that Ruto will be our presidential candidate," Wetang'ula said.
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Both Wetang'ula and ANC leader Musalia Mudavadi had declared that they will run for the presidency.
The announcement now means the two have shelved their bids for Ruto.
The team now has an uphill task of picking a running mate that has become a bone of contention among some leaders in the outfit.
While ANC leaders led by Kakamega Senator Cleophas Malala have maintained the post is meant for them, the Mt Kenya region has insisted the seat had already been reserved for their region even before the formation of the Kenya Kwanza Alliance.
The same stalemate is being experienced in the Azimio La Umoja camp where Wiper leader Kalonzo Musyoka is expected to face off with a host of Mt Kenya leaders for the top seat.
Kalonzo has however made it clear that it is not important that he must get the seat for the coalition to stand.
He maintained that they will continue working together for the sake of Kenya.