We study the propagation of surface plasmon polaritons (SPPs) on a metal surface which hosts a thin film of a liquid dielectric. The ohmic losses, that are inherently present due to the coupling of SPPs to conductors electron plasma, induce temperature gradients and fluid deformation driven by the thermocapillary effect, which lead to a nonlinear and nonlocal change of the effective dielectric constant. The latter extends beyond the regions of highest optical intensity, and constitutes a novel thermally self-induced mechanism that affects the propagation of the SPPs. We derive the nonlinear and nonlocal Schrodinger equation (NNLSE) that describes propagation of low intensity SPP beams, and show analytically and numerically that it supports a novel optical spatial soliton excitation.