Westpac has dismissed a report that it is looking to replace chief executive Gail Kelly.

Earlier this morning, industry newsletter Banking Day reported the Westpac board had become disillusioned with progress under Ms Kelly, including delays in updating its IT systems, and that executive search firm Egon Zehnder International had been given a mandate by the bank's chairman, Ted Evans, to conduct a search for a new chief executive. The same search firm was responsible for recruiting Mrs Kelly to the bank in 2008.

But a Westpac spokeswoman strongly denied the report, describing it as "completely false."

Mr Evans also rejected outright reports he had hired Egon Zehnder to find a replacement Ms Kelly.

He told The Australian: "We are delighted with the work Gail is doing and the report is absolute nonsense."

At the bank's annual meeting last month, Mr Evans said Mrs Kelly provided strong

"The fact that your company remains in a very sound position and has bounced back so soundly from the depths of the GFC reflects strongly on the strong leadership of your CEO Gail Kelly and her hard working executive team," he said.