Dec. 10 (Bloomberg) -- Canada’s main opposition Liberal Party appointed Michael Ignatieff, a former Harvard University professor, as its leader after Stephane Dion announced earlier this week he would step aside.

Ignatieff, 61, will be interim leader until a party convention in Vancouver in May, the Liberals said in a statement. He is the only remaining candidate in the leadership race after rivals Dominic LeBlanc and Bob Rae, a former provincial premier of Ontario, dropped out this week.

“The Liberals are finally showing some decisiveness,” said Allan Tupper, a political science professor at the University of British Columbia. “There’s been a lot of inaction and problems, and this is one of the first quick and dramatic movements they’ve made.”

The Liberals sought to replace Dion, 52, before a confidence vote in Parliament that may take place in January and which could lead to Conservative Party Prime Minister Stephen Harper’s ouster. Ignatieff, the party’s fourth leader since 2003 and the runner-up when Dion was chosen two years ago, may opt to get out of an alliance with the New Democratic Party that was formed earlier this month in a bid to topple the Conservatives, Tupper said.

Dion, who led the Liberals to their worst election result on record in October, said Dec. 8 he would step aside as soon as another leader was appointed. He becomes the first Liberal Party chief in a century not to go on to lead the country.

To contact the reporters on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net.

Last Updated: December 10, 2008 15:08 EST