New York - New York Mayor Michael Bloomberg on Thursday received an all-clear to run for a third term, after the City Council voted to extend a term limits law from eight to 12 years.

Bloomberg, a successful billionaire and founder of the financial wire services bearing his name, demanded a third four-year term so he can continue to lead the city through the severe economic crisis affecting Wall Street.

The 51-member council voted 29-22 in favour of changing the term limits. The new law allows office holders three consecutive four-year terms. This includes City Council members, two-thirds of whom are completing their second term.

"Today, the majority of the City Council decided to give the people of New York a fuller choice in the November 2009 election. I believe that was the right choice, and I want to thank Speaker Quinn for her leadership," Bloomberg said in a statement, following the vote.

"Those of us who work on both sides of City Hall must now move forward with the important decisions that face us, particularly finding ways to soften the fallout from the economic downturn and balancing our budget as revenues decline," the statement said.

Bloomberg's second term will expire in December 2009. Voting for a new mayor will take place in November 2009 and Bloomberg is expected to win because of the strong support he has from the city's eight million inhabitants.

The billionaire-turned-politician spent close to 100 million dollars in his campaign for the first term and a 70 million dollars for the second campaign. (dpa)