Jersey City Mayor Steve Fulop announced he will endorse Democrat Phil Murphy in next year's gubernatorial race instead of running himself.

Fulop made the announcement with Murphy Wednesday at City Hall. Fulop had been expected to enter the race, but will instead run for re-election in Jersey City.

"We still have a lot to do here in Jersey City," Fulop said. "I think that with another four years, if I was fortunate enough for the people of Jersey City to give me that opportunity again, I think we could make even better a great city."

Murphy said he was surprised with Fulop's endorsement because the mayor previously said Murphy's campaign was "floundering." Murphy said he still has much to do before his campaign can be put on a solid track.

Murphy is the former U.S. ambassador to Germany. He also previously worked on Wall Street with Goldman Sachs.