Daniel Korski, one of three candidates on the shortlist to be the Conservative candidate to run for London’s mayor, has dropped out after a woman accused him of groping her 10 years ago.

Daisy Goodwin, a novelist and TV producer, had said Korski put his hand on her breast during a meeting at Downing Street when he was an adviser to David Cameron.

In a statement, Korski said that while he still “categorically” denied the claim, he had decided, “with a heavy heart”, to step down from the race, as “the news agenda is becoming a distraction from the race and the Conservative party”.

The tech entrepreneur wrote: “The pressure on my family because of this false and unproven allegation and the inability to get a hearing for my message of ‘the London Dream’ makes it impossible for my campaign to carry on.

“I am proud of having run a positive campaign that championed new ideas, technology and talent, and the years I have campaigned for the Conservative party and to make the lives of Londoners better.

“I believe strongly that Londoners deserve an uplifting and positive vision for their city. I tried hard to offer that.”

He added: “I wish the excellent remaining contestants well and I know the Conservative party’s eventual candidate will beat Sadiq Khan and offer the kind of rejuvenation London so desperately needs. I will do my utmost to support the Conservative party and the eventual Conservative candidate.”

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