BoE Governor Job: O'Donnell Rules Himself Out

One of the leading external candidates to become the next governor of the Bank of England (BoE) has decided not to apply, according to media reports.

Former cabinet secretary Gus O'Donnell rejected "bizarre" media reports that he wanted the job saying he has other priorities, the Financial Times said.

It leaves the BoE's deputy governor Paul Tucker and the chairman of the Financial Services Authority, Adair Turner, as the favourites to replace Sir Mervyn King next summer.

The deadline for applications was 830am on Monday, with a decision due by the end of the year.

"You need a governor who desperately wants the job and is willing to serve eight years," Lord O'Donnell is quoted as saying.

"I hope whoever is governor is supportive of monetary and fiscal co-ordination.

"Yes, you need an independent governor, but some things need the (Bank and Treasury) working together."

On Saturday, Ladbrokes made the 60-year-old the favourite to land the role, reducing his odds to 2 to 1.

Lord O'Donnell's comments come amid reports that Australia's leading central banker, Glenn Stevens, has not applied for the position either.

The governor of the Reserve Bank of Australia was thought to be in the running, but Reuters reported that "nobody had approached" him from the Treasury.

The BoE's advert said Britain is seeking "a person of undisputed integrity and standing" to take over from Sir Mervyn on July 1, 2013.