George Allen, the man Webb upset, announced Monday he plans to seek the Republican nomination.
Webb said that doesn't play into his decision.
"For us, this is an eight year decision and I think I need to emphasize that. For a lot of people, who are political observers, it's a one year or two year decision whether someone runs or not. But really, it's about the next eight years of my life and my life with my family," says Webb.
Webb says he'll announce his decision by the end of the first quarter.
He said his upset win over Allen in 2006 shows that he can raise plenty of money in a short amount of time.