A wall of silence on the matter from the White House seemingly confirmed the speculation. However, spokesman Scott McClellan finally put the issue to bed on Wednesday with the announcement that Snow had accepted the President’s offer to stay on.

"The president asked Secretary Snow to continue serving in his second term and the president is pleased Secretary Snow agreed to continue his service," revealed McClellan.

Nevertheless, further reports suggest the Mr Snow’s reappointment is merely temporary, and Treasury officials have indicated that he will remain in the post for just one more year to see through the initial stages of tax reform.

A loyal servant of Mr Bush, Snow was frequently to be seen taking the tax cut message to all corners of the United States, although many have criticized him for being ineffectual since his appointment in 2003.

However, his supporters point out in his defense that most of the major tax policy decisions had been taken by the time he arrived at the Treasury, whilst the White House has usurped much of the policy-making role.

Bush and his advisors are currently in the process of selecting an advisory panel on tax reform which will report to Mr Snow, and the Treasury is expected to send proposals on reform to the President next year.