KUALA LUMPUR, July 27 (Reuters) - Malaysia will not nominate a new candidate for the job of Commonwealth secretary-general after its current nominee, Culture Minister Rais Yatim, pulled out of the race in a surprise move, a newspaper said on Friday.

The decision appears to bring the curtain down on the southeast Asian nation's bid to have a Malaysian in the role for the first time.

The 53 countries in the Commonwealth -- grouping mostly former British colonies and spanning almost two billion people -- are preparing to elect a new chief after incumbent Don McKinnon, a former New Zealand foreign minister, gives up the job next March.

"Malaysia has to forget about having someone to serve in that capacity," the Star newspaper quoted Malaysian Foreign Minister Syed Hamid Albar as saying after Rais told the media of his plans to drop out. "We will not put up another candidate."

Rais decided to abandon the contest because his duties and commitments to organising the celebrations of Malaysia's 50th independence anniversary next month would not allow him the time to lobby overseas for his candidacy, the newspaper said.

"I only came to know of his withdrawal from his media statement," Syed Hamid added. "There is nothing much we can do. He has made his own personal decision as an individual."