Goldman Sachs Group said yesterday it had postponed indefinitely its plan to take one of the world's leading investment banks public, citing market volatility.

The decision means that Goldman Sachs' 129-year-old private partnership will last a little longer.

"Our executive committee made this difficult decision after giving full consideration to the volatile state of the global financial markets and the disproportionately negative impact on the financial services sector," said Jon Corzine and Henry Paulson, co-chief executive officers, in a joint statement.

"When markets and other conditions improve, our executive committee may propose a new plan of incorporation and public offering to the partnership for its approval," they said.

Goldman partners had decided earlier in the summer to do away with the partnership structure and sell a 10-15 per cent stake in an initial public offering.

The bank had hoped to raise around $6 billion through the offering.

Based in New York, the bank has a presence in 20 countries and employs more than 11,000 people.

The firm has a blue-chip board and powerful Washington connections, boasting US Treasury Secretary, Robert Rubin, as a former director, and former vice-president and ambassador to Tokyo, Walter Mondale, as the firm's senior Japan adviser.