A third term for Reserve Bank of Australia (RBA) board member Professor Warwick McKibbin is unlikely when his tenure wraps up this year, according to Federal Treasurer Wayne Swan, who added that McKibbin has had a long stay on the board.

However, Swan said on Monday night that a decision has yet to be made on McKibbin's fate as he noted that traditionally, the RBA board gives premium to continuity but the entry of a new talent on its team has not been totally ruled out.

Reappointing McKibbin for another term is not the first for Swan as another board member, Jillian Broadbent, won the nod of the treasurer for a third tour of duty in 2008.

Analysts though are doubtful if McKibbin will get the same extension that Broadbent enjoyed owing to his vocal criticism of a number of government policies such as the economic stimulus program and the proposed flood levy.

On the other hand, former RBA governor Bernie Fraser batted for McKibbin's retention on the board, stressing that "I can understand the desire for new blood from time to time, but I wouldn't be making room for new blood by axing someone who has been a major contributor."

Fraser also reminded Swan that considering the term limit principle should not prevent him from giving the board member term extension as he pointed out that "if someone remains active and alert and continues to contribute in a helpful way to the governance of the bank and the country, then I think there shouldn't be any issue of whether two terms is a limit."

Also, opposition treasury spokesman Joe Hockey said that McKibbin's exit from the RBA board will be a big loss for the central bank, pointing out that "McKibbin is Australia's pre-eminent economist and his views are hugely important for mature political debate in Australia."

Sources said that Swan is eyeing Professor Ross Garnaut as a possible successor in the event that McKibbin was not reappointed when his term expires in July this year.