PARIS Lionel Jospin is planning to resign as prime minister at the start of 2002 to focus his energies on the French presidential election later that year, the influential afternoon daily ******Le Monde******* reported on Friday.

The newspaper, quoting sources close to the socialist prime minister, said Jospin wanted to have his hands free in the run up to the ballot, which is scheduled for March or May 2002, but had not decided on when exactly to leave office.

Jospin has not yet officially announced that he will be a candidate, but it is taken for granted in political circles.

"He envisages resigning ... at the start of 2002 to lead his presidential campaign," ****** Le Monde****** said on its front page.

Jospin is widely expected to stand against incumbent Jacques Chirac, although the president has also so far shied away from confirming that he will seek reelection.

"Lionel Jospin is seeking more room for maneuver between now and the presidential election," *****Le Monde****** reported.

Jospin led the French left to an unexpected triumph in 1997 legislative elections and has ever since shared power with the conservative Chirac. The two men developed an often strained, uncomfortable working relationship.

France is due to hold fresh parliamentary elections in the spring of 2002 and Jospin would normally have been expected to stay in office until the vote.

However, as prime minister he answers to the president and protocol would make it hard for him to launch a full out assault on Chirac.

*****Le Monde****** said a major worry for Jospin was that he could not designate his successor for the final months of the legislature.

Only Chirac has the right to name a prime minister and he could easily appoint a leftist rival to Jospin.

The presidential vote was originally due to take place in May of next year, two months after the legislative ballot.

However, at Jospin's instigation, the National Assembly decided in December to switch the election calendar -- a complex move which political commentators believe might give Jospin the upper hand in an eventual showdown with Chirac.

The reversal still has to be approved by the Senate.

Chirac enjoys slightly stronger public support than Jospin, but his position has been weakened by a split political base and judicial investigations into corruption that have targeted a number of former close associates.

Jospin is perceived by the public to be colder and more calculating than the avuncular Chirac, but he has won credit for his government's strong track record, with the economy booming and unemployment falling. (Reuter)