Downing Street has voiced strong backing for Bank of England governor Mark Carney, saying that Theresa May regards him as "absolutely" the right man for the job.

The Prime Minister's official spokeswoman said that Mrs May was "supportive" of Mr Carney remaining at the Bank when his initial five-year term ends in 2018.

The comments followed reports that the Canadian banker is likely to announce this week that he is ready to serve for a further three years, defying pro-Brexit campaigners demanding his resignation.

Read more: Bank Governor Mark Carney 'set to remain in his post'

Mr Carney was due to speak with the Prime Minister in Downing Street on Monday, though sources played down suggestions that the talks relate to the recent controversy over his position, pointing out that it was a regular meeting that has been in the PM's diary for some time.

Mr Carney had faced mounting speculation that he was preparing to stand down early amid complaints that he went too far in warning of the economic dangers of leaving the EU in order to bolster Remain during the referendum campaign.

But the Financial Times reported that he has told friends he is likely to make a final decision this week after speaking with Mrs May and Chancellor Philip Hammond, and is "leaning strongly" towards remaining in his post.

When he took up the post in 2013, it was agreed that Mr Carney would serve an initial five-year term with the option of another three years.

Asked whether Mrs May wanted him to stay on, the PM's official spokeswoman told a regular Westminster news briefing: "The Prime Minister has been clear in her support for the governor and the work he is doing for the country.

Read more: Bank Governor Mark Carney 'set to remain in his post'

"It is clearly a decision for him but the PM would certainly be supportive of him going on beyond his five years."

Pressed on whether Mrs May saw the governor as "the right man for the job", the spokeswoman replied: "Absolutely."

Mrs May's spokeswoman declined to reveal whether the Prime Minister had spoken with the governor since reports that he might not stay on at Threadneedle Street emerged.

And she would not discuss reports that Mrs May contacted Mr Carney to clarify comments in her speech to this month's Conservative Party conference which were widely seen as critical of his use of ultra-low interest rates and quantitative easing to stimulate the economy.

The spokeswoman said: "The Prime Minister has always had a good working relationship with the governor of the Bank of England and intends to continue that.

"She is fully supportive of the work he has done and is doing for the country. She respects the independent nature of the role and right for him to make decisions about the future, but is clear about her support for him."

Mr Carney has also received warm support from Business Secretary Greg Clark, who on Sunday described him as "a brilliant appointment" who had done "a tremendous job, a fantastic job" at the Bank.

Read more: Bank Governor Mark Carney 'set to remain in his post'

But leading pro-Brexit Tory MEP Daniel Hannan warned that if Mr Carney remains in his post he must stop acting like a "rock star".

The MEP said Mr Carney would have to "comport" himself "as a quiet and discreet public servant who errs on the side of saying too little.

"It's up to him, but if he does stay it's got to be on the basis that he's not the rock star banker who presumes to tell Scotland whether to stay in Britain, which way to vote. Rather, sticks narrowly to his brief," Mr Hannan told the BBC Radio 4 Today programme.

WPP chief executive Sir Martin Sorrell praised Mr Carney for doing a "stellar" job as he warned "the jury's out" on whether the Brexit vote will trigger a recession.

"The action by the Bank of England very quickly after the Brexit vote, I think, helped. We will have to see whether there is a recession, I guess the jury is still out," he told the BBC.

Mr Carney made no response to questions about his future from reporters as he arrived at 10 Downing Street.