Australian premier wants republic when Queen's reign ends

Ms Gillard, whose centre-Left Labour Party has long held that the country should become a republic, said Australia had "deep affection" for the Queen but she should be Australia's final monarch.

The issue is a contentious one for Australians, many of whom are British immigrants or descendants who still feel strong loyalty to Britain and the Queen.

"What I would like to see as prime minister is that we work our way through to an agreement on a model for the republic," Ms Gillard said in Townsville, Queensland.

"I think the appropriate time for this nation to move to be a republic is when we see the monarch change. Obviously I'm hoping for Queen Elizabeth that she lives a long and happy life, and having watched her mother, I think there's every chance that she will."

Many members of the opposition Liberal Party are monarchists –although the party also has had high-profile republicans.

Liberal Party leader Tony Abbot, Ms Gillard's opponent in national elections on Saturday, said he saw no need to change the status quo.

"I think that our existing constitutional arrangements have worked well in the past and I see no reason whatsoever why they can't continue to work well in the future," said Mr Abbott.

"So while there may very well be future episodes of republicanism in this country, I am far from certain – at least in our lifetimes – that there is likely to be any significant change."

Australia is a member of the Commonwealth. As head of state in Australia, the Queen serves a largely symbolic and ceremonial function and is represented by the governor general.

Ms Gillard's party wants to replace the governor general with a president, who would be a largely symbolic figure.