May 27 (Reuters) - UBS has ruled out appointing an

outsider as the successor to CEO Sergio Ermotti, and plans to

choose from a shortlist of three internal candidates when he

steps down in about three years, the Financial Times reported on

Monday.

The Swiss bank could signal the identities of the potential

successors as early as next year's annual meeting, the newspaper

said, citing people with knowledge of the plans.

UBS did not immediately reply to a request for comment.

The paper said that while no final decision had been made

about the shortlist, Iqbal Khan, head of wealth management, is

expected to be included.

It also said Robert Karofsky, head of the investment bank,

Beatriz Martin, who oversees UBS's non-core and legacy unit, and

Sabine Keller-Busse, who is in charge of the bank's Swiss

business, are also seen as potential candidates.