French Finance Minister Christine Lagarde has announced she will run for the job of chief of the International Monetary Fund, a candidacy that already has widespread support across Europe.

Lagarde, 55, is hoping to replace former leader Dominique Strauss-Kahn of France, who is under house arrest in New York on charges he sexually assaulted and attempted to rape a hotel maid.

Lagarde, a former labour lawyer, spent much of her law career in the United States, where she headed the Chicago-based firm Baker & McKenzie.

If appointed, she would be the first woman to head the agency, which provides billions in loans to shore up the world economy and is currently deeply involved in the eurozone debt crisis.

Until now, Lagarde had remained silent about whether she wanted the job. But she said Wednesday she came to the decision after "mature reflection" and consultation with French President Nicolas Sarkozy.

"If I'm elected I'll bring all my expertise as a lawyer, a minister, a manager and a woman" to the job, she said.

Europeans have always held the top IMF job since the agency was created in 1945, following the Second World War.

There is thought to be virtual consensus on Lagarde throughout the 27-nation European Union and Germany and Britain have already officially offered their backing to her candidacy. If she secures U.S. backing, that would likely be enough tip the votes in her favour.

But emerging economies argue it is time to end 65 years of European domination of the IMF's top job.

Mexico has already said it hopes to put up its own candidate, announcing plans to nominate central bank chief Agustin Carstens.

And in a joint statement issued Tuesday, the executive directors representing Brazil, China, India, Russia and South Africa said they wanted to see the election of the next IMF chief be "truly transparent."

"We feel it is outrageous to have the post reserved for a European," said Nogueira Batista, IMF executive director from Brazil and one of the signers of the joint statement.

Lagarde, who helped to get the IMF to agree on rescue plans for Greece, Ireland and Portugal, has promised she would not focus exclusively on Europe.

"No zone has been spared by the financial crisis," she said. "I want to get the biggest possible consensus for my candidacy."

Bank of Canada Governor Mark Carney has also been touted as a potential candidate for the job, since he might be able to build bridges between the competing interests of Europe and the emerging markets.

When asked about Carney's possible candidacy Wednesday, Finance Minister Jim Flaherty appeared to dodge the question.

"There are at least two strong qualified candidates -- Christine Lagarde of France and Agustin Carstens… I know them both very well and they're both highly qualified," Flaherty told Parliament Hill reporters, "Mark Carney is doing a very good job of the governor of the Bank of Canada."

The International Monetary Fund has promised a merit-based process and the decision on the next leader is expected by the end of June.

It will be made by the agency's 24-member executive board, whose officials represent the 187 IMF member countries.

With reports from the Associated Press