At first blush, David Paterson’s decision not to run seems like bad news for Steve Levy. The conventional wisdom had it that Levy’s only shot at becoming governor would be to win a fractured Democratic primary that involved Paterson, Andrew Cuomo and perhaps even several others. With the Cuomo coronation now all but scheduled, that plan has been shelved.

In the wake of the news, the fiery Suffolk executive and his advisers have almost entirely abandoned the idea of running on a Democratic ticket. But that does not mean they have given up: more than ever, they are counting on Rick Lazio to sputter as the GOP convention approaches, forcing the party’s leaders to turn to Levy at the last moment.

Now that there will be no divisive primary between Paterson and Cuomo, there is less chance that the Democrat emerges scarred. According to polls, Lazio needs a weaker Cuomo in order to be competitive.

“The Republicans certainly have to look at their options at this point,” said Mike Dawidziak, Levy’s closest adviser.

Republican leaders so far have discounted that possibility, saying the party is now firmly behind Lazio, who has been running for months. He has the support of the vast majority of Republican and Conservative chairs, including state GOP chairman Ed Cox.

A more likely option, they say, is that the Republicans will attempt to draft Levy to run for comptroller or attorney general on their line—an option Levy has pointedly refused to foreclose.

Republican Harry Wilson has already generated some support for the comptroller’s race, and Staten Island District Attorney Dan Donovan is the inside favorite for the attorney general’s race. But GOP insiders say party leaders, including Cox and Suffolk Chairman John LaValle, have continued to press Levy into considering a down-ballot position. The attorney general’s post would be especially attractive to him, they say, because it would set him up as the likely Republican gubernatorial nominee in 2014.

Following Paterson’s withdrawal, a Republican elected official close to Lazio said this was very much in play.

“Now, do I think there will be more of a concerted effort to get Steve to run for comptroller, or maybe attorney general? Sure. Certainly attorney general,” the official said. “He can maybe prove himself there and see what happens in four years.”

In an interview on the day Paterson announced his decision not to run, Levy would not discount the possibility of running for comptroller or attorney general as a Republican.

“You never say never to any particular position,” he said.

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“Now, do I think there will be more of a concerted effort to get Steve to run for comptroller, or maybe attorney general? Sure. Certainly attorney general,” said a Republican official close to Lazio. “He can maybe prove himself there and see what happens in four years.”

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Levy defended Paterson, saying calls for his resignation only distracted from the state’s immediate fiscal concerns and widening budget gap. He also said he suspected that some legislators would use the scandal to stave off budget cuts that would affect unions and other political constituencies.

“You can’t use the excuse that the governor’s low in the polls, or we’ve got the distraction of this investigation,” Levy said. “My fear is that they’re going to push this forward, possibly until after the election.”

And while Levy said Paterson deserved credit for talking tough on fiscal issues and proposing wide-ranging cuts to state spending, he said the maelstrom of rumors surrounding the governor and the ensuing scandal only emboldened his candidacy.

“This underscores how dysfunctional this state is, and that more than ever, people don’t want the go-along-to-get-along guys. They want someone who’s going to clean house and revolutionize the state, and that plays into the whole theme of my campaign,” Levy said. “People aren’t looking for familiarity right now.”