FINANCE Minister Lindsay Tanner has told parliament he will not contest the next federal election.

Mr Tanner has told parliament his decision should not be seen in any way as a reflection on newly-elected prime minister Julia Gillard or her predecessor Kevin Rudd.

Nor did it reflect Labor's chances of holding his seat of Melbourne which is under threat from the Australian Greens.

Mr Tanner said he had earlier informed Mr Rudd of his decision.

"A couple of weeks ago I spoke with the then prime minister indicating it was my intention not to recontest the coming election, he asked me to delay consideration," he told parliament on today.