By Lesley Wroughton and Glenn Somerville

WASHINGTON, May 14 (Reuters) - The United States on Monday tried to stall a World Bank panel report that is widely expected to be critical of bank President Paul Wolfowitz but insisted it did so only to make sure he was fairly treated.

World Bank board sources said the United States tried to pressure the investigatory panel to hold off the circulation of its final report for several hours to the bank's full board, which meets on Tuesday to start discussing Wolfowitz's fate.

The United States' actions appeared to be a bid to quash a growing feeling among most of the board that Wolfowitz could no longer continue as a credible leader, board sources said.

"We did request a delay this morning, but it had absolutely nothing to do with phone calls or contact with other countries," said White House spokesman Tony Fratto, when asked about whether there was pressure from the White House and Treasury Department to influence key bank member countries, particularly in Europe.

"We just need the time to ensure that the report is fair and factual and to allow for a proper process for discussions going forward," Fratto said.

The White House showed no sign of yielding in its steadfast support for Wolfowitz and said on Monday he should continue as head of the World Bank.

Wolfowitz is fighting for his job amid charges that he broke bank rules in overseeing a promotion and pay rise for his companion, Shaha Riza, a World Bank Middle East expert.

Bank and board officials told Reuters Wolfowitz would address the 24-member board on Tuesday aiming to persuade it that he followed the advice of a bank ethics panel in promoting Riza with a pay raise and transferring her to the State Department to avoid conflict of interest issues when he took over the bank in mid-2005.

The panel's report was eventually circulated among the full board, but in paper form and not by e-mail in an apparent bid to avoid it being leaked.

CONTROVERSIAL CHOICE

World Bank employees have been in virtual revolt for weeks over Wolfowitz's interference in the promotion, which only became public when it was leaked in early April and prompted a board investigation.

Wolfowitz was a controversial choice by President George W. Bush to head the poverty-fighting institution from the beginning because of his neo-conservative background and high-profile role as an architect of the Iraq war while serving as U.S. deputy defense secretary.

One European board source said there had been an effort on Monday morning by the United States to arrange a conference call for Tuesday among the Group of Seven deputies. The conference call was later canceled.

The G7 comprises the United States, Britain, Canada, France, Japan, Germany and Italy, which makes up the more powerful World Bank shareholder governments.

A White House official, speaking on condition of anonymity, said the United States was talking to counterparts at various levels in the G7 and other countries about the panel's report.

The official said consideration of the Wolfowitz issue should be split into two matters -- whether he violated bank rules and whether he should continue as president of the bank.

"And we think there ought to be a bright line between those two questions," the White House official told Reuters.

The official said Wolfowitz had apologized for mistakes he made in the handling of the promotion and deserved credit for fully participating in the board's investigation.

However, the official said that Wolfowitz's mistakes did not warrant his removal from the bank.

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