OTTAWA - Phil Fontaine confirmed Thursday that his days as the country's top native leader are ending -- but the notorious political animal left the door open to run as an MP.

Fontaine, 64, will not seek to extend his three-term marathon as national chief of the Assembly of First Nations when an election is held July 22 in Calgary.

He has led the national advocacy group for a total of almost nine years.

The decision to step aside was "difficult," he told a news conference. His voice wavered at the mention of steadfast support from his two grown children, Mike and Maya, and his longtime partner, human rights lawyer Kathleen Mahoney.

Fontaine's children especially urged him to spend more time with family.

"I've always been a First Nations politician," he said. "This is my field of expertise.

"To do this job requires sacrifices," he said of his five grandchildren who live in Manitoba, a world away from the political grind of his life in Ottawa.

"I've hardly seen them for nine years."

Still, Fontaine is a diehard workaholic who described his time at the assembly helm as "the best job that I have ever had."

He has been repeatedly coaxed by the federal Liberals to run for mainstream politics.

Fontaine said Thursday he hasn't had time to seriously consider the idea. But he drew laughs from those who know him best when he said: "It's an interesting thought."

Then again, Fontaine could resurface on any number of corporate boards as a consultant and deal-shaper. He has worked hard to forge ties with corporate Canada -- seeing economic development as one of the surest tickets out of the poverty that still grips many First Nations.

He blamed "this unnecessary and unjustifiable" hardship on "generations of wrong-headed government policies."

"It can be eliminated in our lifetime," he said. Fontaine called, as he has before, for the gradual dismantling of Indian Affairs and the $10-billion-a-year bureaucracy he says entrenches native misery.

First Nations that are prepared to govern themselves must be allowed to do so in every possible area, he said.

Until then, Fontaine stressed that negotiation -- not blockades and protest -- are the way to spur real change.

"I've always been committed to dialogue. I trust in Canadians. I believe that Canadians are fair-minded, decent people.

"To those people that doubt that this is actually the best way to go, I would remind them of all the successes we've been able to achieve."

Fontaine's crowning victories include a massive compensation settlement for rampant abuse in native residential schools. The landmark deal is expected to top $4 billion when all cases have at last been resolved.

Fontaine was also in the House of Commons last June 11 when the Harper government offered a contrite apology on behalf of all Canadians. The historic moment was made all the more moving by the fact that Fontaine himself was a victim of sexual and physical abuse as a boy at the Fort Alexander school in Manitoba.

Other political leaders lined up Thursday to pay their respects.

Indian Affairs Minister Chuck Strahl marvelled at Fontaine's longevity as a leader having to juggle complex demands from 633 chiefs across Canada.

"Not only did he do it successfully politically, but he got a lot done for First Nations that probably would have been unheard of or unthought of at the start of his career."

Strahl was asked if he would be so kind if he thought Fontaine might run for the Liberals.

"I don't know if . . . he has any other political aspirations or not," he said. "I assume that a man of that calibre's going to get a lot of invitations regardless of what he decides (to do)."

Liberal Leader Michael Ignatieff was also effusive in his praise for Fontaine.

"Although he is stepping down from the AFN, his dedication to the advancement and self-determination of Indigenous people in Canada and around the world will not end here."

Fontaine says if he has one major regret, it's the collapse of the $5-billion Kelowna Accord meant to lift native health, education and housing standards. The complex deal, hammered out by native leaders, premiers and the former Liberal government in 2005, took 18 months of talks.

It was jettisoned by the Harper government as a "press release" and a pre-election gimmick.

Fontaine said the economic meltdown has had one upside in that it spurred the Conservatives to promise $40 billion in recession-busting programs over the next two years -- including $1.4 billion for native communities.

Investment on that scale would not have come otherwise, he said.

Fontaine was elected to his first three-year term in 1997 but was defeated in 2000 by Matthew Coon Come. He regained the leadership in 2003 and was easily re-elected in 2006.

He leaves the assembly on a high note as it struggles for relevance in far-flung communities still waiting for a fair share of wealth from traditional lands and resources that were never ceded or sold.

"I've always tried to convey to Canadians that First Nations are not asking for any special treatment. We are seeking what is rightfully ours.

"We insist on fairness and justice -- nothing more, nothing less."