CANBERRA (Reuters) - Australian Prime Minister John Howard stared down leadership tension within his conservative government on Tuesday, flatly refusing to quit despite a string of bad opinion polls ahead of looming national elections.

"I have never run from a fight before and I don't intend to do so now," a stern-faced Howard, 68, told reporters in a clear message to critics within the ruling coalition.

Australia's Prime Minister John Howard speaks at a press conference in Sydney, ahead of the Asia Pacific Economic Co-operation (APEC) summit, September 3, 2007. REUTERS/Mick Tsikas

Howard, in power for 11 years, must call an election by the end of the year. Consistently bad poll figures have prompted some nervous ministers and Liberal Party backbenchers to suggest he resign now and leave it to his much younger deputy, Treasurer Peter Costello, to lead the campaign for a fifth straight term.

"That matter was resolved last year," said Howard, referring to the leadership. "It is not in the party's interest to revisit it. That is my position, my very strong position.

Sky television reported early on Tuesday that two of Howard's most loyal cabinet colleagues, Foreign Minister Alexander Downer and Environment Minister Malcolm Turnbull, had told him the Liberal Party would be better off with a new leader.

Late on Monday, Downer acknowledged that government lawmakers had been considering the leadership, but now backed Howard over Costello to lead the party to the next election.

"We have just reaffirmed the view that I've had all along, that John Howard is the best person to lead our country, and therefore the best person to lead our party, into the election," Downer told Sky television.

"We have obviously been a bit concerned about our position and thought about it and discussed it, in terms of the leadership of the party and the leadership of the government."

Howard earlier pulled Turnbull aside on the floor of Parliament, ahead of an address by Canadian Prime Minister Stephen Harper, and had an animated conversation, in full view of journalists and photographers.

Howard said he believed he was best placed to lead the Liberal-led coalition into the election, where he will seek a fifth straight term, but said it would be difficult to win.

OVERWHELMING DEFEAT


Opinion polls over recent months have unfailingly pointed to an overwhelming defeat for the government, with Howard and several ministers in danger of losing their seats.

The latest Reuters Poll Trend, released on Tuesday, found the government trailed the centre-left Labor Party opposition by 14.7 points on a two-party basis, where minority votes are distributed to ultimately decide an election.

Costello, 50, has long been considered Howard's heir apparent, but his ambitions to take over have been frustrated by Howard, who has stubbornly refused to hand over power.

In July 2006, Howard crushed Costello's hopes of leading the government into this year's election, announcing that he would seek a fifth term, with an open-ended promise to remain leader.

Howard has consistently lagged Labor's Kevin Rudd, 49, in opinion polls since Rudd became opposition leader last December.

Defence Minister Brendan Nelson earlier stood by Howard, saying he should lead the coming electoral battle.

"I certainly don't envisage any circumstances in which the prime minister will not lead our government into the forthcoming election," Nelson told Australian television.

"Our country is moving in the right direction. John Howard and Peter Costello have got us into that situation."

Howard said on Monday he had discussed his future with his family on Sunday night, and they had decided he should stay on.

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