The suggestion is that Mike Moore, a former New Zealand prime minister, and Supachai Panitchpakdi, Thailand's deputy premier, hold the job consecutively.

The WTO has been unable to reach a consensus on whether Mr Supachai or Mr Moore should become director general.

Former New Zealand PM Mike Moore

The post to lead the 134 nation grouping has been open since Renato Ruggiero retired in April.

Another proposal put forward - and supported by Mr Supachai - has been for a vote of members.

But this has been flatly rejected by the US and other countries who want to follow the WTO's consensus approach.

The new proposal is for the normal four year term to be extended to allow both candidates to serve three years each.

Thailand's deputy PM has supported a vote

Trade wars

The suggestion appears to be gaining some support among trade ministers at a Asia-Pacific Economic Co-operation forum in Auckland, New Zealand.

The host country's trade minister Lockwood Smith said on Tuesday it was worthy of discussion.

"It's something that obviously has been put up in good faith and I'm sure will be explored with the prospective parties," said Mr Smith.

"If there's some way like that that can break the impasse then that would be positive," he added.

Australian Trade Minister Tim Fischer, reported to be behind the compromise proposal, said: "No one country can claim the initiative.

"Everyone's trying various formulas to look at breaking the impasse."

Tit-for-tat

Mr Supachai said on Sunday the issue needed to be resolved before the WTO's Third Ministerial Conference in Seattle in November to kick off the next round of trade talks.

The leadership crisis at the WTO has come at a bad time for the organisation as a series of trade wars between the US and Europe grows.