ABC Chair Ita Buttrose has made the decision not to seek an extension to her term, finishing in March next year.

Buttrose, 81, informed her fellow board directors, including 7:30 chief political correspondent Laura Tingle, of the news on Tuesday.

The veteran journalist and prominent media figure also notified the government of her decision, despite recent contemplation of staying on.

The announcement was publicly made by Communications Minister Michelle Rowland, who lauded Buttrose as a “giant of Australia’s media industry."

Her exit from the position on March 6, 2024, will initiate the government's search for a successor. Leading contenders reportedly include Buttrose's deputy Peter Tonagh, as well as other high-profile names from various sectors.

The departure will mean three new board appointments are needed, adding to a significant time of transition for ABC, with Managing Director David Anderson's term also expiring in May next year.

Despite the praise for Buttrose's accomplishments, Rowland, who was then shadow communications, criticised Prime Minister Scott Morrison's selection process in 2019, as the esteemed journalist had not applied for the role.