Vienna - Austrian Chancellor Alfred Gusenbauer will step down as head of the Social Democratic Party of Austria in October amid low approval ratings and internal opposition, but will remain head of government, he announced Monday.

Although Gusenbauer will remain nominal party chief until October, Transport Minister Werner Faymann was installed as executive party chairman on Monday and is slated to become the Socialist leader in autumn, Austria's APA news agency reported.

Gusenbauer, Austrian chancellor since early 2007, said that his government had produced a number of excellent results, but that it had not been possible to communicate them properly.

Voters' confidence in their government leader reached an all-time low of 16 per cent last week, a poll published in the Oesterreich newspaper showed.

Gusenbauer faces strong internal opposition from socialist- dominated trade unions opposing his health reform plans and demanding a stronger social profile for the party.

"I remain federal chancellor and will be the top candidate in the next elections," Gusenbauer said, adding that the party leadership supported this strategy.

The Social Democrats form a coalition government with the conservative Austrian People's Party, ensuring a majority in parliament.

"I will evaluate this new situation together with my friends, and then I will comment on that evaluation," conservative party leader and Vice Chancellor Wilhelm Molterer said. Neither he nor other conservatives made a statement about the possibility for early elections. (dpa)