Verbal agreement with Prime Minister Abdullah Ahmad Badaw

Malaysia's former premier Mahathir Mohamad said Wednesday he never intended his successor Prime Minister Abdullah Ahmad Badawi to serve more than one term and suggested he should stand down.

Abdullah, who has had a very public falling out with the veteran leader, will contest for his second term in general elections expected to be held in March.

Mahathir previously said he made a mistake in picking Abdullah, and should have opted for influential deputy prime minister Najib Razak.

"That was my thinking, since (Abdullah) was older than Najib, he should be PM for one term and then Najib should be able to take over," he told a press conference.

"They see a government that is retreating and they want to take advantage," Mahathir said of the street rallies which would have been unthinkable during his term in power which ended in 2003 after more than two decades.