The party, led by Alex Salmond, has previously called for a single pro-independence candidate.
The Alba party has decided not to contest the forthcoming by-election in Rutherglen and Hamilton West.
The by-election was triggered by a recall petition after Margaret Ferrier was suspended from the Commons. But after a meeting of Alba's national council on Saturday Mr Salmond said the call had been "rebuffed". "We believe that four pro-independence candidates already in a first-past-the-post election risks handing the seat to the unionist Labour Party."Mr Salmond also said he believed the by-election in Rutherglen was unnecessary and that Ms Ferrier had been treated with "disproportionate disdain". Alba's two MPs voted against her House of Commons suspension.
The seat has frequently changed hands between the SNP and Labour, and is being seen as a key test of Labour's chances of reviving its fortunes in Scotland.
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