The initial hurdle in the way of New York City Mayor Michael Bloomberg seeking a third term has been removed by a federal judge's ruling in his favor, he still faces a likely obstacle from a state legislator looking for a law that might impede the mayor from a third run.

According to the ruling by the US District Judge Charles Sifton, the New York City Council was legally correct in extending term limits for itself and Mayor. As such, a civil rights court case filed by elected officials who opposed the new law - which City Comptroller Bill Thompson called "hijacking of democracy" - was dismissed.

The judge said that the lawsuit failed to prove their claims of conflict of interest or a constitutional right to a voter referendum.

Bloomberg had knocked over two public referendums - held in 1993 and 1996 - imposing the two-term limit, by signing a law wherein the term limit for elected officials was extended to three 4-year terms.

Bloomberg, a self-made billionaire and former Wall Street trader, was elected mayor in 2001 and in 2005. He decided to help overturn the referendums and run again this year, citing the current economic crisis which, he argued, required a person of his experience.

In the 64-page court ruling said that city law does not limit the City Council's "ability to overturn or modify laws passed by referendum. As a result, each subsequent enactment takes priority over previous ones, regardless of the source."