Media reports said that the US Treasury confirmed that Wolfensohn will not be seeking an extension of term at the bank. For Wolfensohn, this would have been the third term at the helm of World Bank.
The 71-year-old, Australian-born Wolfensohn has been president of the World Bank since June 1995, when the then US president Bill Clinton nominated him.
Reports said that an American is likely to succeed the current incumbent as the next World Bank chief. Apart from Zoellick, the other contenders for the plum post are said to be outgoing US Secretary of State Colin Powell, US Treasury Undersecretary for International Affairs John Taylor, former director of the Environmental Protection Agency Christine Todd Whitman are said to be Rodrigo Rato, Managing Director of the International Monetary Fund, is also said to be in the running.
The new chief will take charge on June 1.
A BBC report said that Wolfensohn's lobbying efforts at having his term extended have not borne fruit, with the Bush Administration deciding to have a new man at the World Bank helm of affairs.