Gus O'Donnell, the former top British civil servant, has decided not to apply to become the next Bank of England governor, the Financial Times reported on Monday.

Candidates have until 0730 GMT (8:30 a.m. British time) on Monday to submit their applications, 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," O'Donnell, 60, is quoted as saying in the FT.

"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. Quantitative easing is a classic example where governor and chancellor need to work together," said O'Donnell.

Bookmakers Ladbrokes (LAD.L) on Saturday made O'Donnell the favorite to land the role after tightening his odds to 2 to 1. Remaining favorites include BoE Deputy Governor Paul Tucker and Financial Services Authority Chairman Adair Turner.

Britain is seeking "a person of undisputed integrity and standing" to take over from Sir Mervyn King from July 1 next year, according to the BoE's job advertisement.