BRASILIA, April 10 (Reuters) - Petrobras

Chief Executive Jean Paul Prates will remain in his role for now

as pressure to remove him from Brazil's state-run oil company

has eased, two sources familiar with the situation told Reuters

on Wednesday.

Word that Prates will stay on for now comes after days of

intense speculation that he could be replaced by Aloizio

Mercadante, the head of state development bank BNDES. People

close to the matter had said Prates' tenure was unlikely to last

the week.

Prates has been under fire from parts of Brazil's governing

coalition that want to see him bring down fuel prices and ramp

up job-creating investments.

With Prates staying on and the government in need of extra

funds, it is now more likely that Petrobras' board will approve

the distribution of 50% of the extra dividends withheld about a

month ago, said one of the sources.

Petrobras is set to have a shareholders meeting on April 25,

where the release of dividends could be put to a vote.

Petrobras shares rose 2% in Sao Paulo to their highest

closing price since the firestorm over the withheld dividends.

A former senator with longstanding ties to President Luiz

Inacio Lula da Silva, Prates got a show of support from his

former colleagues in the chamber to stay on, a third source

said.

Energy Minister Alexandre Silveira, who was especially vocal

in his criticism of Prates, on Tuesday struck a conciliatory

tone, telling reporters that he respects the Petrobras CEO and

any decision about the matter will be made by Lula himself.

Prates is still awaiting a meeting with Lula, after last

week's speculation, but he sees no rush to meet now, according

to one of the sources.