Howard sets out retirement plans

Mr. Howard has faced calls from within his party to resign

Australian PM John Howard has indicated he will retire in the next three years if he wins the elections this year.

He said in a television interview that he would expect to retire before the end of his next term in office.

Earlier, he emerged unscathed from a meeting of the ruling Liberal Party at which his leadership was discussed.

Polls show Mr Howard - who hopes to win a fifth consecutive term in office - is lagging far behind his main rival Kevin Rudd of the opposition Labor Party.

He is reported to have come under pressure to consider resigning from senior members of his party in recent days.

Heir apparent

Mr Howard emerged from Wednesday's meeting of the Liberal Party with his leadership unchallenged, but he is believed to have told them of his plans to retire.

"If the Australian people are good enough and kind enough to re-elect me again, there are a lot of things I want to do and I would want to approach those things with enormous energy," he later told ABC television.

"But I would expect, well into my term, that after those things have been implemented and bedded down I would probably or certainly form the view well into my term that it will make sense for me to retire."

He said he expected to hand over power to his long-term heir apparent, Treasurer Peter Costello, "although it would be matter for the party to determine".

Mr Howard, who has been in power for 11 years, must call an election before the end of the year.

His close alliance with the Bush administration as well as his stance on the environment and labour reform have led to his fall in popularity, the BBC's Nick Bryant reports.