UPDATE 1-Australia's Stevens not asked to be new BoE governor-source

(Recasts, adds source)

SYDNEY/LONDON, Oct 8 (Reuters) - Australia's top centralbanker Glenn Stevens has not been approached by British Treasuryofficials about applying for the Bank of England's (BOE)governor role, a source with direct knowledge of the situationsaid on Monday.

London's Sunday Times newspaper reported Stevens was amongthe contenders to become the next head of the Bank of England,citing unidentified sources.

"Nobody had approached" Stevens about the role, said thesource, who declined to be identified because the matter wasprivate.

Britain is seeking "a person of undisputed integrity andstanding" to take over after governor Mervyn King steps downnext year, according to the BoE's job advertisement.

Stevens, 54, has been governor of the Reserve Bank ofAustralia since September 2006 and is the country's highest paidpublic servant, with an annual salary of over A$1 million ($1million), more than double King's earnings.

The Reserve Bank of Australia (RBA) and Britain's Treasurydeclined to comment.

An economist who styles himself the "most boring man inSydney", Stevens is regarded as a pragmatist, shifting last yearfrom warning of higher interest rates to cutting them twice insuccession within months.

Under his leadership, the RBA was one of the first centralbanks to start slashing rates during the global financial crisisin 2008, even though domestic inflation was running above 4percent. His term ends in September 2013.

The U.K. Treasury has declined to confirm the names ofapplicants for the post, which currently carries an annualsalary of 308,000 pounds ($499,000).

Favourites with bookmakers include BoE Deputy Governor PaulTucker and Financial Services Authority Chairman Adair Turner.

Contender Gus O'Donnell, the former top British civilservant, has decided not to apply, according to the FinancialTimes.

Senior figures from the commercial banking industry includeJim O'Neill, the chairman of Goldman Sachs's asset managementdivision.

Candidates have until 0730 GMT on Monday to submit theirapplications, with a decision due by the end of the year.

(Reporting by Cecile Lefort; Additional reporting by Tim Castlein London and Morag MacKinnon in Sydney)

((tim.castle@thomsonreuters.com)(+44)(0)(207 542 7947))