Rep. Albert H. Quie (R-Minn.), 53, is expected to announce next Wednesday at the state fair that he will retire from Congress next year to seek the Republican nomination for governor. Quie is ranking Republican on the House Education and Labor Committee, a member of the House ethics committee and a close friend of former President Ford.

Leonard Nadasdy, chairman of the Draft Quie Committee, said Quie told him to set up a press conference next Wednesday. Nadasdy said the odds on Quie's running were better than 90 per cent, while another draft committee source said Quie would decide to run. In Washington, Quie, a 19-year veteran of the House where he is regarded as a leading expert on education, confirmed the press conference setup but would neither deny nor confirm that he would run for governor.

Quie is a dairy farmer, representing the largely rural conservative Republican First District in southeastern Minnesota. If nominated in a field that is expected to include at least two others, he would face incumbent Democratic Gov. Rudy Perpich. Perpich is an "accidental governor" who, as lieutenant governor, succeeded Wendell Anderson when Anderson had himself appointed to the U.S. Senate to take Vice President Mondale's vacated seat.