Andi Mallarangeng said Yudhoyono has withdrawn a letter to parliament sent by former president Megawati Sukarnoputri a few weeks before the end of her term.

The letter told legislators of Sutarto's resignation and proposed army chief General Ryamizard Ryacudu as his replacement.

"The reason behind the withdrawal of the letter is that the government is now in the middle of a consolidation process and a change in military leadership is deemed not appropriate for the time being," Mallarangeng told

Yudhoyono took office last week.

Under the law, parliament has to approve the resignation and new appointment.

Mallarangeng said Sutarto's request would be reconsidered "at a more appropriate time".

Cabinet Secretary Sudi Silalahi said later that Sutarto has agreed to carry on as military chief until further notice.

"At the appropriate time, there will be a change, but not partial or in bits because, it is true, there is a plan to replace all top officials in the Indonesian armed forces, including the national police chief and the head of the (three) forces," Silalahi said.

The police are actually a separate agency and no longer part of the armed forces.

Silalahi said the decision to retain Sutarto was purely based on the fact that changes were not desirable during a period of consolidation.

Sutarto, 57, has said he tendered his resignation to Megawati in September because he was already past retirement age and there was a need for new leadership in the armed forces.

But a Western diplomat has told reporters that Sutarto opposed a decision by Megawati to award two retired generals in her cabinet honorary rank promotions in the last days of her administration.

In an interview with Tempo weekly magazine, Sutarto attacked the promotions given to then-security minister Hari Sabarno and then-national intelligence agency chief Abdullah Hendropriyono.

Sutarto is seen as a straightforward general who believes the military should be under civilian control. Under the rule of dictator Suharto, which ended in 1998, the military was heavily involved in politics.

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