Tracey McDermott has removed herself from the line-up for the leadership role at the UK's financial watchdog.

The UK's Financial Conduct Authority's acting chief executive has taken herself off the list of candidates for the top role at the regulator.

There has been much speculation over who will succeed Martin Wheatley as the FCA's CEO. Wheatley stepped down after the UK government said in July that the regulator needed “different leadership”. His role as an advisor to the FCA’s board is due to come to an end on 31 January.

Tracey McDermott, who took over as acting CEO in September, had been tipped for the role. However, in an interview with BBC Radio 4 on Thursday, George Osborne, the UK finance minister, revealed she was not interested.

He said: “There has been a very effective interim leader in Tracey McDermott who has been doing a good job but she does not want the job full time.”

The regulator then issued a statement confirming McDermott's withdrawal from the process to appoint permanent leadership, adding that she will continue on as acting CEO until a replacement is in post.

McDermott said: “I have been at the FSA/FCA for 15 years and I remain extremely committed to, and passionate about, the important work we do. It has been, and remains, a privilege to lead this organisation. However, going through the recruitment process has made me reflect on what I want to do with the rest of my career.

“As a result I have decided that this is not the right job for me at this stage of my career. This was a decision taken after many months of careful thought and was not one that I took lightly.”

Others said to be among the contenders for the position are Mark Branson, the CEO of Switzerland's Financial Market Supervisory Authority (Finma), and Greg Medcraft, chairman of the Australian Securities and Investments Commission.