Costello will not contest next election

14:00 AEDT Mon Jun 15 2009

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Former federal Liberal treasurer Peter Costello will not contest the next federal election.

Costello has announcned he will not renominate for the seat of Higgins, putting an end to speculation about his political future.

A growing number of Liberal MPs had said Mr Costello was a destabilising force within the Liberal Party and should either run for the leadership or withdraw from politics altogether.

His deadline for deciding whether he would renominate was June 30.

"I have informed my electorate committee that I will not nominate for re-election as the Member for Higgins," Mr Costello said.

Mr Costello will serve out his current term as a backbencher.

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