"We have taken an important decision to withdraw 17 party candidates who were to contest the GTA election," Banerjee said congratulating GJM for already gaining a majority by winning uncontested 28 of the total 45 seats.
"We have taken the decision to withdraw all the 17 candidates in the greater interest of democracy ...We don't want any confrontation with GJM," the chief minister told 19th anniversary of Martyrs' day rally of Trinamool in Kolkata.
The decision, she said, was taken "Because we believe that a greater sacrifice is required in the greater interest."
The Communist Party of India-Marxist had earlier withdrawn all its candidates.
The chief minister said she would attend the swearing-in of the new members of GTA slated on August 4.
GJM leader Harkabahadur Chhetri, GJM MLA (from Kalimpong), who attended the rally, thanked Banerjee for her efforts to return peace and democracy in Darjeeling hills.
"So long Trinamool Congress is there with Mamata Banerjee at the helm of affairs in the state, we will stay with the people of West Bengal ... We will walk together, work together and reach the destination together," he said.