Hulu CEO Jason Kilar is no longer in the race to become Yahoo Inc.'s next chief executive, leaving interim CEO Ross Levinsohn as the candidate to possibly take on the position.

Hulu announced that Kilar had "graciously declined" being considered for the position.

According to two knowledgeable sources, Levinsohn and Kilar were the final two candidates being considered on the Yahoo board's list for the tenured position.

Yahoo has worked hard to keep up with the new digital era taken over by companies like Apple, Google, Facebook, and Twitter.

The company has struggled to keep leaders since refusing Microsoft's takeover in 2008. Following rejection of Microsoft's $44 billion offer, Yahoo has been through a shuffle in hiring and keeping CEOs within the last four years. Past CEOs included Terry Semel, Jerry Yang, Carol Bartz, and Scott Thompson.

Jonathan Miller, News Corp's Chief Digital Officer and former CEO of AOL Inc., had also been in the running for the new CEO position, but quickly declined further consideration. Sources say he dropped out due to a close friendship with Levinsohn, who has wanted to run for Yahoo CEO for years. Miller and Levinsohn were once partners in running investment firm, Fuse Capital.

Recruiting firm Spencer Stuart is heading the search for Yahoo's next CEO. No word as to whether Levinsohn is guaranteed the position has been concluded upon, however the chances of him getting it seem to be extremely high now.