David Cameron will be Prime Minister until the end of the decade, George Osborne says

George Osborne is tipped as one of the favourites to take over as leader of the Conservative Party after David Cameron

David Cameron has said he will not seek a third term and insists he will not resign even if Britain votes to leave the EU (Toby Melville - WPA Pool /Getty Images)

David Cameron will continue as Prime Minister until "the end of this decade," George Osborne has said.

The Chancellor said he did not envisage a Conservative Party leadership election until much closer to the 2020 general election, "when David Cameron says he wants to go".

Mr Cameron has said he will not seek a third term and insists he will not resign even if Britain votes to leave the EU, despite the likelihood he would face huge pressure to stand down after the 23 June referendum.

Mr Osborne, who is tipped as one of the favourites to take over alongside leading Leave campaigner Boris Johnson, suggested the Prime Minister will quit on his own terms.

Asked on ITV's Peston On Sunday whether he was preoccupied with thoughts of becoming Tory leader, Mr Osborne said: "The truth is I'm not because I'm a very happy, content member of David Cameron's team.

"I fought very hard to get my friend elected as leader of the Conservative Party, then elected as the Prime Minister of this country, and I'm very happy being part of that team that is bringing about this change to this country.

"There will be a leadership election at the end of this decade, we've got a lot of work to do before then."

He added: "It will be at the end of this decade in my view, when David Cameron says he wants to go."

Additional reporting by PA